MIRA INFORM REPORT
|
Report Date : |
28.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHRI BAJRANG ALLOYS LIMITED |
|
|
|
|
Registered
Office : |
521/C, Urla Industrial Complex, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
16.08.1990 |
|
|
|
|
Com. Reg. No.: |
005964 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.90.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27103CT1990PLC005964 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a moderate track record. Profit margin of the company appears to be low during the current
year. However, trade relations are reported as fair. Business is active.
Payment are reported to be slow but correct. The company can be considered for business dealings with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current account
deficit or CAD in April-June widened to 4.9 % of gross domestic product. High
imports of gold and oil led to a worsening of the trade deficit, resulting in
CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the
corresponding quarter of the previous financial year. The government aims to
bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2
billion in 2012/13.
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been
named the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top
spot for the world’s most honest city while Lisbon, the capital of Portugal,
proved to be the least honest. The survey put hundreds of people to test
in four continents to find out just how honest they were by dropping wallets
and seeing how many would be returned.
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “B+” |
|
Rating Explanation |
Have high risk of default |
|
Date |
10.07.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A4” |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk. |
|
Date |
10.07.2013 |
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 DECLINED BY
|
Name : |
Mr. Jayesh Kapadi |
|
Designation : |
HOF |
|
Contact No.: |
91-9826950700 |
|
Date : |
25.10.2013 |
LOCATIONS
|
Registered Office/ Factory : |
521/C, Urla Industrial Complex, Raipur – 493221, Chhattisgarh, India |
|
Tel. No.: |
91-771-2324281/ 2324282/ 4288000/ 2323628 |
|
Fax No.: |
91-771-2323629/ 4288001 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Suresh Goel |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Anand Goel |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Narendra Goel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vikash Kumar Khedia |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Dinesh Agrawal |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Raj Kumar Yadava |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh Kapadi |
|
Designation : |
HOF |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1452069 |
16.13 |
|
|
3958900 |
43.99 |
|
|
3958900 |
43.99 |
|
|
5410969 |
60.12 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5410969 |
60.12 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
1366487 |
15.18 |
|
|
|
|
|
|
1110263 |
12.34 |
|
|
1107235 |
12.30 |
|
|
5046 |
0.06 |
|
|
3461 |
0.04 |
|
|
1585 |
0.02 |
|
|
3589031 |
39.88 |
|
Total Public shareholding (B) |
3589031 |
39.88 |
|
Total (A)+(B) |
9000000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
9000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc. |
||||
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|
||||
|
Products : |
|
GENERAL INFORMATION
|
Customers : |
· Hindustan Construction Company Limited · Reliance Industries Limited · Thyssenkrupp Industries India Private Limited · Siemens Limited · Shree Renuka Sugars Limited · Afcons Infrastructure Industries Limited · Gammon India Limited · KEC International Limited · Jyoti Structures Limited · Adani Group · L and T Limited · Soma Enterprises Limited ·
Hindalco Industries Limited |
|||||||||||||||||||||
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|
|||||||||||||||||||||
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||
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|||||||||||||||||||||
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Bankers : |
Bank of Baroda, Raipur, Chhattisgarh,
India |
|||||||||||||||||||||
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|
|||||||||||||||||||||
|
Facilities : |
NOTE : LONG TERM BORROWING There is no default, continuing or otherwise, as at the balance
sheet date, in repayment of any of the above loans. SHORT TERM
BORROWING There is no default, as at the balance
sheet date, in repayment of any of above Loans. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
R K Singhania and Associates Chartered Accountants |
|
Address : |
205, 1st Floor, Samta Colony, Raipur – 492
001, Chhattisgarh, India |
|
Tel. No.: |
91-771-2255744-45/ 4036066 |
|
Fax No.: |
91-771-2254188 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Legal Advisor : |
V.K. Munshi and Associates |
|
|
|
|
Wholly owned Subsidiary : |
Popular Mercantile Private Limited |
|
|
|
|
Associate : |
· Shri Bajrang Power and Ispat Limited · Shri Bajarang Ispat and Plywood Limited · Shri Bajrang Hydro Energy Private Limited · S.B. Multimedia Private Limited · Shimmer Investments Private Limited · Swastik Mercantiles Limited · Jainarayan Hari Ram Goel Charitable Trust |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
1000000 |
Preference Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 210.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each
|
Rs.90.000
millions |
|
|
|
|
|
Note:
Reconciliation of
number of equity shares outstanding at the beginning and at the end of the
year.
|
PARTICULARS |
AS AT 31.03.2013 |
|
No of shares outstanding as at the beginning of
the year |
9000000 |
|
Add : Number of shares allotted during the year
as fully paid-up |
-- |
|
Number of shares outstanding as at the end
of the year |
9000000 |
Rights, preferences and
restrictions attaching to various classes of shares
|
SL No. |
Class of shares |
Rights, preferences and restrictions
(including restrictions on distribution of dividends and repayment
of capital) attached to the class of shares. |
|
1 |
Equity Shares |
Holder of Equity Share has one Vote per
share. |
|
2 |
Preference shares |
Not Issued |
Shares in the company held by
each shareholder holding more than 5% shares
|
SL No. |
Name of the
shareholder |
As at 31.03.2013 |
|
|
|
No. of shares |
% Held |
|
|
1 |
Rajendra Goel * |
847500 |
9.42 |
|
2 |
Atlanta Securities Private Limited |
760500 |
8.45 |
|
3 |
Narendra Goel * |
632700 |
7.03 |
|
4 |
Hariram Goel * |
566100 |
6.29 |
|
5 |
Anand Goel * |
513400 |
5.70 |
|
6 |
Suresh Goel * |
482400 |
5.36 |
* Hold as in capacity of Karta of HUF
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 |
90.000 |
90.000 |
90.000 |
|
(b) Reserves & Surplus |
161.850 |
147.816 |
126.463 |
|
(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) |
251.850 |
237.816 |
216.463 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
276.325 |
35.368 |
42.186 |
|
(b) Deferred tax liabilities (Net) |
4.403 |
4.775 |
4.192 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
1.397 |
1.129 |
1.781 |
|
Total Non-current
Liabilities (3) |
282.125 |
41.272 |
48.159 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
290.007 |
284.864 |
242.542 |
|
(b) Trade
payables |
4.519 |
6.746 |
11.836 |
|
(c) Other
current liabilities |
54.465 |
49.644 |
27.367 |
|
(d) Short-term
provisions |
8.179 |
10.061 |
10.465 |
|
Total Current
Liabilities (4) |
357.170 |
351.315 |
292.210 |
|
|
|
|
|
|
TOTAL |
891.145 |
630.403 |
556.832 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
49.047 |
54.559 |
51.298 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
18.520 |
15.010 |
14.564 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
217.641 |
3.145 |
2.969 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
285.208 |
72.714 |
68.831 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
213.206 |
262.041 |
255.579 |
|
(c) Trade
receivables |
293.260 |
192.341 |
187.413 |
|
(d) Cash
and cash equivalents |
30.846 |
0.663 |
0.978 |
|
(e)
Short-term loans and advances |
68.625 |
102.644 |
44.031 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
605.937 |
557.689 |
488.001 |
|
|
|
|
|
|
TOTAL |
891.145 |
630.403 |
556.832 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1297.731 |
1560.165 |
1609.827 |
|
|
|
Other Income |
0.894 |
1.606 |
1.503 |
|
|
|
TOTAL
(A) |
1298.625 |
1561.771 |
1611.330 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1027.371 |
1283.302 |
1257.298 |
|
|
|
Purchase of Stock in Trade |
15.455 |
36.778 |
94.520 |
|
|
|
Changes In Inventories |
47.501 |
7.518 |
20.920 |
|
|
|
Employees benefit Expenses |
9.800 |
8.603 |
8.000 |
|
|
|
Other Manufacturing Expenses |
68.460 |
83.593 |
84.041 |
|
|
|
Other Administrative Expenses |
60.751 |
65.204 |
68.658 |
|
|
|
TOTAL (B) |
1229.338 |
1484.998 |
1533.437 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
69.287 |
76.773 |
77.893 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
38.695 |
36.835 |
38.550 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
30.592 |
39.938 |
39.343 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
9.855 |
8.955 |
8.144 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
20.737 |
30.983 |
31.199 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6.704 |
9.630 |
10.110 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
14.033 |
21.353 |
21.089 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
84.257 |
72.904 |
61.815 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10.000 |
10.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
88.290 |
84.257 |
72.904 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
0.000 |
8.671 |
4.765 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.56 |
2.37 |
2.34 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
209.200 |
|
Total Expenditure |
|
|
192.800 |
|
PBIDT (Excl OI) |
|
|
16.400 |
|
Other Income |
|
|
0.000 |
|
Operating Profit |
|
|
16.400 |
|
Interest |
|
|
11.100 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
5.300 |
|
Depreciation |
|
|
2.300 |
|
Profit Before Tax |
|
|
3.000 |
|
Tax |
|
|
1.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
2.100 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
2.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.08
|
1.37
|
1.31 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.60
|
1.99
|
1.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.38
|
5.03
|
5.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.13
|
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.25
|
1.35
|
1.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.59
|
1.67 |
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 |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10357380 |
20/04/2012 |
60,000,000.00 |
BANK OF BARODA |
MID CORPORATE BRANCH, 1ST FLOOR, K.K. ROAD, MAHAV |
B40220584 |
|
2 |
10301928 |
25/06/2011 |
80,000,000.00 |
RELIANCE CAPITAL LIMITED |
"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY, KOPARKHAIRNE,
NAVI MUMBAI - 400710, MAHARASHTRA, INDIA |
B18624114 |
|
3 |
10039900 |
18/10/2008 * |
1,243,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, MAIN BRANCH, K. K. ROAD, RAIPUR - 492001,
CHHATTISGARH, INDIA |
A52168622 |
|
4 |
10042964 |
15/12/2007 * |
429,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, SECTOR 1, BHILAI - 490001, CHHATTISGARH, INDIA |
A37869419 |
|
5 |
10010048 |
12/07/2011 * |
340,000,000.00 |
STATE BANK F INDIA |
COMMERCIAL BRANCH, SECTOR 1, BHILAI - 490001, CHHATTISGARH, INDIA |
B17662685 |
|
6 |
90204285 |
24/09/2007 * |
10,000,000.00 |
BANK OF BARODA |
RAIPUR MAIN BRANCH, MAHAVIR GOUSHALA COMPLEX, K. K. ROAD, RAIPUR -
492001, CHHATTISGARH, INDIA |
A30978316 |
|
7 |
90202004 |
27/11/2010 * |
400,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, FIRST FLOOR, MAHAVIR GOUSHALA COMPLEX,
FAFADIH, RAIPUR - 492001, CHHATTISGARH, INDIA |
B03097656 |
|
8 |
90203655 |
12/02/2013 * |
350,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, FIRST FLOOR, MAHAVIR GOUSHALA COMPLEX,
FAFADIH, RAIPUR - 492001, CHHATTISGARH, INDIA |
B72377880 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Loans and Advances from
Related Parties From Directors and their Relatives ** |
11.978 |
7.398 |
|
Loans and Advances from
others |
|
|
|
From Corporate Bodies |
2.246 |
27.635 |
|
From Financial Institutions and Banks |
260.046 |
0.000 |
|
Total |
274.270 |
35.033 |
|
Note **As clarified by management all above mentioned Unsecured loan treated as Long term. |
||
COMPANY OVERVIEW
Subject is one of the leading manufacturing company of Raipur. Company is engaged in manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
ECONOMIC AND
INDUSTRY OVERVIEW
Indian steel industry plays a significant role in the country's economic
growth. It plays such a significant role that they have their own Ministry of
Steel. India has acquired a central position on the global steel map with its
giant steel mills, acquisition of global scale capacities by players,
continuous modernisation and up-gradation of old plants, improving energy
efficiency, and backward integration into global raw material sources.
Currently, ranked the world's fourth largest crude steel capacity, India
is expected to become the second largest producer of crude steel in the world
by 2015-16. India is also the world's largest producer of sponge iron with a
host of coal-based units located in its mineral-rich states.
India's steel making capacity is estimated to exceed 100 million tonnes
(MT) by 2013 and the production is expected to reach 275 MT by 2020. The per
capita steel consumption has been increased from 34 Kilograms (Kg) in 2004-05
to 59 Kilograms (kg) in 2011-12.
World Steel Association has said steel demand is expected to pick up in
India and demand expected to grow by 5.9% to 75.8 million tones (mt) in 2013
following 2.5% growth in 2012. Steel demand 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% thanks to the reform
measures aimed at narrowing the fiscal deficit, coupled with measures to
improve the foreign direct investment climate. The global apparent steel use
will increase by 2.9% to 1454 million tonne (mt) in 2013, following a 1.2%
growth in 2012. In 2014, it is forecast that world steel demand will grow
further by 3.25%.
2012 was a challenging year for the steel industry with apparent steel
use increasing at the slowest rate since 2009 when demand declined by -6.5%.
This was mainly due to the Eurozone crisis which persisted throughout 2012 and
its impact was felt further afield. On the top of this, corrective
macroeconomic measures in major emerging economies also contributed to a
concerted slowdown globally.
However, in the early part of 2013, the key risks to the global economy,
the Eurozone crisis, a hard landing for the Chinese economy, and the US fiscal
cliff issue - have all stabilized considerably and they now expect a recovery
in global steel demand to kick in by the second half, led by the emerging
economies. Yet, the situation on the financial markets remains fragile and the
Eurozone crisis is far from being solved as the recent events in Cyprus have
again shown. In 2014, they expect a further pickup in global steel demand with
the developed economies increasingly contributing to growth.
OUTLOOK
The steel industry in today's world is considered as the backbone of the
economy and is often indicative of economic progress, as it plays a critical
role in infrastructural and overall economic development.
The outlook for the steel sector in India remains positive . The
Government of India has laid special emphasis on development of infrastructure
with huge investments in power, roads and highways, railways, housing, oil and
gas etc which shall drive demand. The Company with a well defined product
portfolio is poised to take advantage of the growth in iron and steel demand.
The new research report - Indian Steel Industry Outlook 2013 says that
the, Indian crude steel production grew at a CAGR of around 12% during
2012-2013. By 2014, the global steel industry may start to emerge from the deep
down turn in 2008. Moreover, with the government proactive incentive plans to boost
economic growth by injecting funds in various industries, such as construction,
infrastructure, automobile, and power will drive the steel industry in future.
Steel consumption in India is expected to grow significantly in coming years as
per capita
finished steel consumption is far less than its regional counterparts.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
(a) Claims against the company not
acknowledged as debt (Security amount deposited against the claim Rs.
1.5 Lacs) |
0.582 |
1.069 |
|
(b) Guarantees Bank Guarantees (Margin money of Rs. 1.00 Lac deposited
with bank) |
1.000 |
0.000 |
|
Bill Discounted Under LC |
275.522 |
486.292 |
|
Corporate Guarantees on behalf of other
companies |
2092.000 |
2092.000 |
FIXED ASSETS
· Leasehold Land
· Freehold Land
· Factory Building
· Other Building
· Plant and Equipments
· Rolls
· Furniture and Fixtures
· Vehicles
·
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.61.63 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.85.14 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.