MIRA
INFORM REPORT
|
Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
CMI FPE LIMITED |
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|
|
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Formerly Known
As : |
FLAT PRODUCTS EQUIPMENTS ( |
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Registered
Office : |
Mehta House, Plot No. 64, Road No. 13, MIDC Industrial Area, Marol, Andheri (East), Mumbai-400093, |
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Country : |
India |
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|
Financials (as
on) : |
31.03.2013 |
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|
Date of
Incorporation : |
28.05.1986 |
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Com. Reg. No.: |
11-39921 |
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Capital
Investment / Paid-up Capital : |
Rs. 49.378 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1986PLC039921 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMF03321D |
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PAN No.: [Permanent Account No.] |
AAACF0252G |
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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 of Cold Rolling (CR) Mills, Galvanis Lines and Associated
Equipments in |
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|
|
No. of Employees
: |
300 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6024000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. The company has incurred a loss during current year. However, general
financial position of the company is good. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitment. The company can considered normal 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 – 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 |
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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 |
CRISIL |
|
Rating |
Long term rating A (Downgraded From A+) |
|
Rating Explanation |
Adequate degree of safety. It carry low credit
risk. |
|
Date |
June 18, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating A1 |
|
Rating Explanation |
Very strong degree of safety. It carry
lowest credit risk. |
|
Date |
June 18, 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.
INFORMATION PARTED BY
|
Name : |
Mr. Nitin Gunekan |
|
Designation : |
Exim Department |
|
Contact No.: |
91-22-66762737 |
|
Date : |
15.10.2013 |
LOCATIONS
|
Registered Office / Head Office : |
Mehta House, Plot No. 64, Road No. 13, MIDC Industrial Area, Marol, Andheri (East), Mumbai-400093, |
|
Tel. No.: |
91-22-66762737 / 66762727 |
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Fax No.: |
91-22-66762237 / 66762737 / 66762738 |
|
E-Mail : |
Customer Feedback customerfeedback@cmifpe.com Jobs jobs@cmifpe.com Sales sales@cmifpe.com Investor Relations investors@cmifpe.com |
|
Website : |
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Factory 1 : |
A-84/2,3, M.I.D.C., Taloja Industrial Area, Taluka:
Panvel, Dist: Raigad Maharashtra – 410208, |
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Tel. No.: |
91-22-27403300 |
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Fax No.: |
91-22-27410664 |
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Factory 2 : |
Survey No.144/1/3, Village Rakholi, |
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Tel. No.: |
91-260-6451263 / 264 |
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Fax No.: |
91-260-2641259 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Jean Marc Kohlgruber |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Jean Gourp |
|
Designation : |
Director (Managing Director Up
to April 15, 2013) |
|
Date of Birth/Age : |
38 Years |
|
Qualification : |
Masters Degree in Mechanical Engineering |
|
Expertise : |
Vast Experience in Manufacturing, Sales and General Management |
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|
|
|
Name : |
Mr. Yves Honhon |
|
Designation : |
Director |
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|
|
Name : |
Mr. Ravindra Nath Tandon |
|
Designation : |
Director |
|
Date of Birth/Age : |
72 years |
|
Qualification : |
B.Sc. (M.E.) |
|
Expertise : |
Vast
Experience in Steel Processing Infrastructure Development and Project
Management |
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|
|
|
Name : |
Mr. D. J. Balaji Rao |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Raman M. Madhok |
|
Designation : |
Director |
|
Date of Birth/Age : |
52 years |
|
Qualification : |
M.S., MBA, Dip T and D |
|
Expertise : |
Vast
Experience in Human Resources, Marketing, Project Management, General
Management and Consulting |
|
Other
Directorship :
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|
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|
|
|
Name : |
Mr. Sanjoy Kumar Das (w.e.f. April 15, 2013) |
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Designation : |
Managing Director |
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|
Name : |
Mr. N. Sundararajan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kumar Mutha |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Anand Kmar |
|
Designation : |
Chief Operating – Global Sourcing and Manufacturing |
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|
Name : |
Mr. Deepak Khanna |
|
Designation : |
Chief Operating Officer – Engineering |
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|
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|
Name : |
Mr. Vijay Karayi |
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Designation : |
Director – Management Assurance, QMS and CIO |
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|
Name : |
Mr. Amul Niphadkar |
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Designation : |
Vice President – HR |
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|
Name : |
Mr. Akash Ohri |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5500 |
0.11 |
|
|
5500 |
0.11 |
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|
|
|
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|
3697700 |
74.89 |
|
|
3697700 |
74.89 |
|
Total shareholding of Promoter and Promoter Group (A) |
3703200 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
0.00 |
|
|
1350 |
0.03 |
|
|
1550 |
0.03 |
|
|
|
|
|
|
129738 |
2.63 |
|
|
|
|
|
|
546138 |
11.06 |
|
|
528741 |
10.71 |
|
|
28446 |
0.58 |
|
|
28446 |
0.58 |
|
|
1233063 |
24.97 |
|
Total Public shareholding (B) |
1234613 |
25.00 |
|
Total (A)+(B) |
4937813 |
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) |
4937813 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cold Rolling (CR) Mills, Galvanis Lines and Associated
Equipments in |
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Products : |
Cold Rolling Mills and Skin Pass Mills ·
4-High Cold Rolling Mills · 6-High Cold Rolling Mills · 20-High Cold Rolling Mills · Z-High / 6-High (SENDZIMIR) Mills · 4 High Skin Pass Mill · 2 High Skin Pass Mill · Aluminum Strip Mills Processing Lines ·
Pickling Lines ·
Electrolytic Cleaning Lines ·
Continuous Hot Dip Galvanising Lines ·
Electrolytic Tinning Lines ·
Tension Levelling Lines ·
Paint Coating Lines ·
Cut To Length Lines ·
Slitting Lines ·
Corrugating Machines · Rewinding Lines |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
300 (Approximately) |
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Bankers : |
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Facilities : |
NOTE: Long Term
Borrowing: Details of terms of repayment for long-term borrowings and security provided
in respect of the secured long term borrowings:
Short Term
Borrowing: The above
borrowings from banks are secured by first charge over all the immovable
properties and movable fixed assets of the Company located at Silvassa and
Andheri and second charge over all the immovable properties and movable fixed
assets of the Company located at Taloja and first pari passu charge on all current assets of the Company
both present and future. |
|
Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
|
Tel No. : |
91-79-25782542,
43, |
|
Fax No. ; |
91-79-27582551 |
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|
|
|
Cost Auditors : |
|
|
Name : |
Kishore Bhatia and Associates Cost Accountants |
|
|
|
|
Holding Company : |
œ Cockerill
Maintenance and Ingenierie S.A. |
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|
|
|
Fellow
Subsidiaries (with whom Company has made transactions during the year) |
œ
CMI Industry Automation Private Limited œ
CMI UVK GmbH œ
CMI Engineering (Beijing) Company œ CMI M+W
Engineering GmbH |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs. 80.000 Millions |
|
200000 |
Preference Shares |
Rs.100/- each |
Rs. 20.00 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4937813 |
Equity Shares |
Rs.10/- each |
Rs. 49.378 Millions |
|
|
|
|
|
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 |
49.378 |
49.378 |
49.378 |
|
(b) Reserves & Surplus |
1456.693 |
1466.629 |
1385.711 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
1506.071 |
1516.007 |
1435.089 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
230.857 |
33.333 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
89.899 |
143.752 |
343.716 |
|
(d) long-term provisions |
116.713 |
104.412 |
80.612 |
|
Total Non-current Liabilities (3) |
437.469 |
281.497 |
424.328 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
396.334 |
0.000 |
0.000 |
|
(b) Trade payables |
1473.919 |
615.370 |
616.638 |
|
(c) Other current
liabilities |
1411.487 |
1653.216 |
1624.039 |
|
(d) Short-term provisions |
170.988 |
166.839 |
274.216 |
|
Total Current Liabilities (4) |
3452.728 |
2435.425 |
2514.893 |
|
|
|
|
|
|
TOTAL |
5396.268 |
4232.929 |
4374.310 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
603.876 |
312.673 |
248.947 |
|
(ii) Intangible Assets |
19.430 |
15.642 |
9.890 |
|
(iii) Capital
work-in-progress |
63.546 |
153.220 |
4.311 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.001 |
0.001 |
0.001 |
|
(c) Deferred tax assets (net) |
61.573 |
52.250 |
48.370 |
|
(d) Long-term Loan and Advances |
164.870 |
122.361 |
80.322 |
|
(e) Other Non-current assets |
70.829 |
205.407 |
636.801 |
|
Total Non-Current Assets |
984.125 |
861.554 |
1028.642 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
193.546 |
201.682 |
171.841 |
|
(c) Trade receivables |
2640.473 |
1541.830 |
776.720 |
|
(d) Cash and cash
equivalents |
181.341 |
301.269 |
865.744 |
|
(e) Short-term loans
and advances |
333.117 |
325.581 |
332.586 |
|
(f) Other current
assets |
1063.666 |
1001.013 |
1198.777 |
|
Total Current Assets |
4412.143 |
3371.375 |
3345.668 |
|
|
|
|
|
|
TOTAL |
5396.268 |
4232.929 |
4374.310 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5328.953 |
3517.970 |
4184.053 |
|
|
|
Other Income |
76.172 |
58.232 |
252.367 |
|
|
|
TOTAL |
5405.125 |
3576.202 |
4436.420 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2392.894 |
1333.948 |
1507.432 |
|
|
|
Purchases of stock-in-trade |
1414.769 |
923.844 |
997.692 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
(13.891) |
(4.279) |
5.858 |
|
|
|
Employee benefits expense |
434.022 |
380.472 |
343.335 |
|
|
|
Other expenses |
1119.087 |
716.829 |
787.397 |
|
|
|
TOTAL |
5346.881 |
3350.814 |
3641.714 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
58.244 |
225.388 |
794.706 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
31.470 |
17.997 |
35.879 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
26.774 |
207.391 |
758.827 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
46.033 |
43.872 |
49.093 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(19.259) |
163.519 |
709.734 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(9.323) |
53.907 |
237.948 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
(9.936) |
109.612 |
471.786 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
412.499 |
342.542 |
248.183 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
-- |
10.961 |
262.650 |
|
|
|
Dividend |
-- |
24.689 |
49.378 |
|
|
|
Ordinary Dividend |
-- |
-- |
49.378 |
|
|
|
Tax on Dividend |
-- |
4.005 |
16.021 |
|
|
BALANCE CARRIED
TO THE B/S |
402.563 |
412.499 |
342.542 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
705.219 |
752.445 |
392.010 |
|
|
|
Export of services |
17.163 |
18.700 |
7.422 |
|
|
TOTAL EARNINGS |
722.382 |
771.145 |
399.432 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials, components, stores and spares |
822.855 |
545.170 |
466.467 |
|
|
|
Capital goods |
61.690 |
0.809 |
1.858 |
|
|
TOTAL IMPORTS |
884.545 |
545.979 |
468.325 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.01) |
22.20 |
95.55 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.18)
|
3.06 |
10.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.36)
|
4.65 |
16.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.36)
|
4.06 |
16.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01)
|
0.11 |
0.49 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.42
|
0.02 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.38 |
1.33 |
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 |
Yes |
|
10] |
Designation of
contact person |
Yes |
|
11] |
Turnover of
firm for last three years |
Yes |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons for
variation <> 20% |
-------------------- |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital in
the business |
Yes |
|
16] |
Details of
sister concerns |
Yes |
|
17] |
Major
suppliers |
No |
|
18] |
Major
customers |
Yes |
|
19] |
Payments
terms |
Yes |
|
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 |
INDEX CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10339492 |
15/02/2012 |
300,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA |
B33831249 |
|
2 |
90237236 |
11/09/2013 * |
3,300,000,000.00 |
Canara Bank |
PRIME CORPORATE
BRANCH - 1, MAKER TOWER, F WING, 20TH FLOOR,
CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B86490372 |
*
Date of charge modification
OPERATIONS:
The year was very
challenging for the Company. The Company has secured substantial growth in the
Total revenue of the Company by 51.14% to Rs. 5405.125 millions in the year as
compared to Rs. 3576.202 millions in the previous year. Simultaneously, the
Company has also successfully completed the major expansion and modernization
plan at its Taloja plant.
Despite this,
mainly due to difficult economic conditions coupled with fierce competition,
high inflationary market conditions resulted in higher input cost, severe
pressure on margins, which resulted in marginal operating loss for the year.
Members are aware
that business environment continues to be volatile due to global slowdown,
uncertain environment and high fiscal deficit and inflation. This is impacting
the fresh long-term investments and/or delaying execution of existing projects,
which resulted in modest growth in order entries during the year.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Ministry of
Steel (Government of India) through National Steel Policy sets out the
Government’s vision for the future of the steel industry. It aims at
transforming Indian steel industry into a global leader in terms of production,
consumption, and quality and techno economic efficiency while achieving
economic, environmental and social sustainability. The vision is to ensure
availability of quality steel to accelerate growth of the domestic economy and
provide amenities of life to the people of India at par with the developed
world. The Policy ensures sustainable development of the steel industry, provide
sufficient infrastructure and facilitate easy availability of vital inputs such
as natural resources and finance to support faster growth of Industry.
The Policy will
encourage steel consumption, supporting R and D projects such as for product
design and generic campaign in specific areas which help in addressing concerns
related to environment, climate change, human health, housing for the masses
and higher rural penetration for inclusive growth. It will also promote the
advantages of steel use in terms of sustainability, durability, amenable design
and life cycle costing compared to alternate materials like plastics and wood
and will be made more visible and adequately propagated through sustained
programmers of awareness.
The sustainable
economic growth in India has led to more disposable income and increasing
purchasing power with Indian households. This has resulted in higher demand for
steel consuming products. In spite of India adopting policies that have
stimulated consumer demand and fostered entrepreneurship, the per capita steel
consumption has only increased to 57 kg in 2011 from 36.6 kg in 2005, which is
significantly lower than China and other countries. It also highlights the
potential in India for increased steel usage.
The contribution
of flat steel in total steel consumption is higher for developed nations.
Globally, this share is 55 58 per cent whereas in US, it stands at 70-73 per
cent. In India, the contribution of flat steel is at the level of 45-48 per
cent only. Though India is quite well
integrated into the global economy, unlike most other Asian countries, demand
drivers are more domestic market and consumption led rather than export market
led. The growth over the last decade and the expected growth of 6-8 per cent
over the next few years are going to significantly grow the consuming class.
The national
policy seeks to facilitate the creation of additional capacity, removal of
procedural and policy bottlenecks that affect the availability of production
inputs, increased investment in research and development, an the creation of road, railway, and port
infrastructure. The policy focuses on the domestic sector but also envisages a
steel industry growing faster than domestic consumption, which will enable
export opportunities to be realized. Current steel investment plans India’s
ready availability of iron ore and low cost labor contribute significantly to
the cost competitiveness of producing steel in India.
As per report of
World Steel Association; steel demand is expected to pick up in India and
demand expected to grow by 5.9% to 75.8 million tonne (mt) in 2013 following
2.5 % growth in 2012. Steel demand in India is likely to grow due to monetary
easing which is expected to support investment activities. In 2014, growth in steel
demand is expected to further accelerate to 7.0%, based on reform measures
aimed at narrowing the fiscal deficit, coupled with measures to improve the
foreign direct investment climate. This would further increase if the demand
for steel in rural India increases.
The BRIC (Brazil,
Russia, India and China) countries play a dominant role in the global iron and
steel industry in terms of reserves, production and consumption. The steel
industry in BRIC countries is expected to see sustainable growth over the next
years.
In order to meet
domestic steel demand, there is a requirement of large scale capacity additions
both by private and public sector undertakings.
The Company has
always believed in the long term growth potential of India and also invested significantly
in capital expenditure to be ready to seize growth opportunities.
OUTLOOK:
The overall
outlook for the steel sector is positive and the demand is likely to pick up in
the coming financial year on the back of revival in economic growth and the
Governments’ measures to ease infrastructure investment rules. India is
currently the world’s fourth largest producer of crude steel after China,
Japan, and the U.S. Major public and private sector firms are planning to
expand their capacities. During the year
under review, the growth in consumption of steel has been impacted by lower
demand from steel using industries, which is likely to remain modest through in
the current year. However, the long-term outlook for steel demand in India is
quite robust due to increasing demand from several sectors, including
automotive, consumer durables, oil and gas, industrial machinery, real estate
and infrastructure and also the fact that per capita steel in India is still
one of the lowest in the world.
Higher production
of value-added products, capacity expansion, up gradation of production
processes achieving cost effective production in an environment friendly
manner, have been the major thrust areas of the Indian Steel producers in the
recent times.
Keeping in view
the economic environment in India and the Company’s domestic market as well as
its primary markets overseas, the strategy going forward would be to facilitate
proactive identification of additional needs of existing customers and servicing
these in an effective manner. They would also be on the lookout to forge
strategic relationships with existing and new customers in new products where
they see significant potential, both in terms of business volumes and
profitability.
As stated earlier,
the per capita consumption of steel in India is significantly below
international levels. The economic policy initiatives, particularly those
towards infrastructure development are expected to have a favorable impact on
the Company’s operations, going forward.
It would be
relevant to mention here that as part of strategic orientation, CMI FPE already
has a well established and appropriately staffed “Business Innovation Cell”
which focuses on Value Engineering, low cost solutions, new products and
customers’ need driven improvements in existing equipments and functionalities.
The Business Innovation Cell works in close collaboration with the Innovation
function at Group level to ensure, to the extent possible, coherence of
initiatives taken at business unit level in India with those at Group level.
The Company has
successfully completed the modernization and expansion plan of its Taloja
Plant, which is now a “Centre of Excellence for Cold Rolling Mills”. The Plant
is now equipped with improved infrastructure, machines, productivity and
enhanced capacity. The Company is also progressively setting up a Greenfield
facility at Hedavali, near Khopoli (Maharashtra), while close monitoring the
future growth in the steel sector.
The Company’s
short to medium term strategy would be to fully utilize its capacity to produce
critical components and assemblies in-house at its own workshops and outsource
the remaining workload either at a component level to vendors or at an assembly
level with the overall objective of optimizing the supply chain.
On an overall
basis, the Company would focus on meeting the complete spectrum of customer
needs, thereby differentiating itself from the competition.
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER ENDED JUNE 30, 2013
|
Sr No. |
Particulars (PART I) |
Quarter
Ended June 30,
2013 |
|
|
|
(Unaudited) |
|
1 |
Income from operations |
|
|
|
(a) Net sales/income from
operations (Net of excise duty) |
1014.814 |
|
|
(b) Other operating income |
3.044 |
|
|
Total income from operations (net) |
1017.858 |
|
2 |
Expenses |
|
|
|
(a) Cost of materials consumed |
443.689 |
|
|
(b) Purchases of stock-in-trade |
328.261 |
|
|
(c) Changes in inventories of
finished goods and work-in-progress |
17.011 |
|
|
(d) Employee benefits expense |
118.828 |
|
|
(e) Depreciation and
amortisation expense |
20.806 |
|
|
(f) Other expenses |
290.335 |
|
|
Total expenses |
1218.930 |
|
3 |
ProfiU(Loss) from operations before
other income, finance costs and exceptional items (1-2) |
(201.072) |
|
4 |
Other income |
11.640 |
|
5 |
Profit/(Loss) from ordinary
activities before finance costs and exceptional items (3*4) |
(189.432) |
|
6 |
Finance costs |
19.470 |
|
7 |
Profitf(Loss) from ordinary
activities after finance costs but before exceptional items (5-6) |
(208.902) |
|
8 |
Exceptional items |
-- |
|
9 |
Profit / (Loss) from ordinary
activities before tax (7-8) |
(208.902) |
|
10 |
Tax expense |
(71.325) |
|
11 |
Net Profit/[Loss) from ordinary
activities after tax (9-10) |
(137.577) |
|
12 |
Extraordinary items (net of tax expenses) |
-- |
|
13 |
Net Profit/(Loss) for the period
(11-12) |
(137.577) |
|
14 |
Paid-up equity share capital (Face Value Rs. 10/-) |
49.378 |
|
15 |
Reserves
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
|
|
16. |
Earnings per share (before
extraordinary items) (of Rs. 10/- each) (not annualised): |
|
|
|
(a) Basic (Rs.) |
(27.86) |
|
|
(b) Diluted (Rs.) |
(27.86) |
|
|
Earnings per share (after
extraordinary items) (of Rs. 10/- each) (not annualised): |
|
|
|
(a) Basic (Rs.) |
(27.86) |
|
|
(b) Diluted (Rs.) |
(27.86) |
SELECT INFORMATION FOR THE QUARTER ENDED JUNE 30, 2013
|
|
PART II |
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
Public Shareholding |
|
|
|
- Number of Shares |
1234613 |
|
|
- Percentage of Shareholding |
25.00% |
|
|
Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
|
|
- Percentage of shares (as a percentage of the total shareholding of Promoters and Promoter Group) |
Nil |
|
|
- Percentage of shares (as a percentage of the total capital of the Company) |
Nil |
|
|
b) Non-encumbered |
|
|
|
- Number of Shares |
3703200 |
|
|
- Percentage of shares (as a percentage of the total shareholding of Promoters and Promoter Group) |
100.00% |
|
|
- Percentage of shares (as a percentage of the total capital of the Company) |
75.00% |
|
Particulars |
Quarter
ended June 30, 2013 |
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
1 |
|
|
Disposed of during the quarter |
1 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
REPORTING OF SEGMENT WISE REVENUE, RESULTS AND
CAPITAL EMPLOYED
|
|
Particulars |
Quarter Ended June 30, 2013 |
|
1 |
Segment Revenue [Sales
revenue by geographical market) |
(Unaudited) |
|
|
(a) India |
8,088.35 |
|
|
(b) Overseas |
2,059.79 |
|
|
(c) Unallocated |
30.44 |
|
|
Total |
10,178.58 |
|
|
Less: Inter Segment Revenue |
- |
|
|
Income from operations |
10,178.58 |
|
2 |
Segment Results [Profit/(Loss)
before tax and finance costs from each segment] |
|
|
|
(a) India |
278.96 |
|
|
(b) Overseas |
(252.59) |
|
|
(c) Unallocated |
30.44 |
|
|
Total |
56.81 |
|
|
(Add)/Less: |
|
|
|
(i) Interest (including other finance costs) |
194.70 |
|
|
(ii) Other Un-allocable Expenditure |
2,067.53 |
|
|
(iii) Un-allocable income |
(116.40) |
|
|
Total Profit / (Loss)
before tax |
(2,089.02) |
|
3 |
Capital Employed (Segment
Assets - Segment Liabilities) |
|
|
|
(a)India |
14,302.50 |
|
|
(b) Overseas |
645.20 |
|
|
(c) Unallocated - Corporate |
(1,262.76) |
|
|
Total |
13,684.94 |
NOTE:
1.
The results of the Company are
dependent on the gross margins of the product and project mix, which vary every
quarter and get reflected accordingly.
2. The
above results were reviewed by the Audit Committee and were thereafter approved
by the Board of Directors at its meeting held on July 30, 2013. The same have
been subjected to Limited Review' by the Statutory Auditors.
3. The
Company has been taking active steps and is hopeful of recovery of an amount of
Rs. 302.707 millions receivable from a foreign customer which has remained
outstanding for over three years for several reasons. By way of abundant
caution, it has also made adequate provision there for in the books of account.
4. As at
June 30, 2013, the Company has incurred net unrealized mark-to-market loss of
Rs. 72.630 millions on outstanding derivative contracts (As at March 31, 2013:
Rs. Nil, As at June 30, 2012: Rs.8.755 millions).
5. The
Company has only one business segment i.e. Original Equipment Manufacture and
Project management. It operates in two geographical segments i.e. India and
Overseas.
6. The
figures for the quarter ended March 31, 2013 are the balancing figures between
the audited figures in respect of the full financial year ended March 31, 2013
and the published year-to-date figures up to the third quarter of the full
financial year ended March 31, 2013.
PRESS RELEASE:
CMI FPE
to supply a Continuous Galvanizing Line and a Skin Pass Mill to AL Ghurair Iron
and Steel (UAE)
Mumbai,
July 31, 2013
CMI FPE Ltd., one
of CMI Industry’s Indian subs idiaries, has entered into an agreement with Al Ghurair Iron and Steel (AGIS), United Arab
Emirates, to supply a new Skin Pass Mill (SPM)
as well as a new Continuous Galvanizing Line (CGL) equipped with the
patented CMI Blowstab ® technology.
With these additional lines, CMI FPE enables AGIS’ capacity for
galvanized production to double from existing 200,000 mts to 400,000 mts
annually. The new processing line will supply galvanized coils from 0.20 mm to 1.20 mm. CMI FPE will also help
AGIS to boost the Color Coating industry in the Middle East with the new Skin Pass Mill. CMI FPE is
to commission these two new processing lines within 22 months.
The patented CMI Blow Stab ® technology for jet coolers and after-pot
coolers will be integrated with the new galvanizing line & will further
improve efficient cooling of strip and zinc coating uniformity.
Abu Bucker Husain, CEO, AGIS: “Our current production lines, that have
been operational since 2009 were already
designed and supplied by CMI FPE, and we are fully satisfied with the
technology as well as their service.”
Sanjoy Das, Managing Director, CMI FPE Ltd.: “This contract with AGIS
reaffirms CMI FPE’s ability to help customers increase their product range by
providing optimal technical requirements of the market in a cost effective
way.”
About CMI FPE
CMI FPE is the Indian hub of CMI Industry, a supplier of global
solutions for Cold Rolling Mill complexes.
It has developed a wide range of technologies in the field of processing
lines, rolling mills, thermal and chemical processes.
About CMI Industry
As an expert in industrial processes, CMI Industry designs, integrates
supplies and upgrades mechanical, thermal, chemical and biological treatment
industrial equipment and energy efficiency solutions. CMI Industry supplies steelmakers with cold
complexes and all their constituent equipment. Designed by CMI, these
facilities boast stat e-of-the-art technologies for the production of
increasingly more sophisticated flat carbon steel. Some of these technologies are also available
in equipment for processing other products such as stainless steel, silicon
steel or long products.
FIXED ASSETS:
œ Land
œ Flats
œ Building
œ Plant and Machinery
œ Furniture
œ Motor Car
œ Computers
œ Electrical Installations
œ Office Equipments
œ Computer
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.61.69 |
|
|
1 |
Rs.98.59 |
|
Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
54 |
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.