MIRA INFORM REPORT

 

 

Report Date :

13.09.2013

 

IDENTIFICATION DETAILS

 

Name :

indian steel corporation limited

 

 

Registered Office :

611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

16.02.2004

 

 

Com. Reg. No.:

11-144559

 

 

Capital Investment / Paid-up Capital :

Rs. 712.017 Millions

 

 

CIN No.:

[Company Identification No.]

U27100MH2004PLC144559

 

 

TAN No.:

[Tax Deduction and Collection Account No.]

MUMI04849F

 

 

PAN No.:

[Permanent Account No.]

AABCI2060A

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Steel Products i.e. CR Coils / Sheets, GP Coils / Sheets and PPGL Coils etc.

 

 

No. of Employees :

Information declined by the management

 

 

RATING and COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 18260000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record. There appears drastic dip in its profitability during 2012. The profit margin appears to be low. The external borrowings seem to be increasing over years.

 

However, trade relations are reported to be fair. Business is active. Payments 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.

 

 

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

ICRA

Rating

Term Loan : (ICRA) BB

Rating Explanation

Having moderate risk of default regarding timely servicing of financial obligation. 

Date

June 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

 

MANAGEMENT NON-COOPERATIVE [91-22-22851303]

 

 

LOCATIONS

 

Registered/ Branch Office :

611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India

Tel. No.:

91-22-22851303

Fax No.:

91-22-22823177

E-Mail :

ashutosh_mishra@indiansteels.com

rsalbom@ruchigroup.com

Website :

http://www.indiansteels.com

 

 

Head Office :

503, Mahakosh House, 7/5, South Tukoganj, Indore – 452001, Madhya Pradesh, India

Tel. No.:

91-731-4017909/ 4017509

Fax No.:

91-731-4017919

E-Mail :

isc@indiansteels.com

info@indiansteels.com

 

 

Factory :

Survey No. 370, Near Bhimasal Railway Crossing, National Railway, 8-A, Bhimasar, Gandhidham, Anjar, District Kutch – 370240, Gujarat, India

Tel. No.:

91-2836-285371/ 72/ 73/ 74

Fax No.:

91-2836-285375

 

 

Branch Offices :

AHMEDABAD

207, Iscon Avenue, Opposite Choice Restaurant, C.G. Road, Navrangpura, Ahmedabad - 380009, Gujarat, India

Tel.:  91-79-30074314

Fax:  91-79-30074314

 

BANGALORE

No.595, Sri Lakshmi Adinarayan Swami Arcade, 1st Floor, JP Nagar 1st Phase,  5th Cross, Bangalore - 560078, Karnataka, India

Tel.: 91-80-33278235

Fax: 91-80-33278231

 

NEW DELHI

43, 2nd Floor, Daryaganj, New Delhi – 110002, India

Tel.: 91-11-43651100/ 59

Fax: 91-11-23241561

 

CHENNAI

No.40 and 41, East Madha Church Road, Royapuram, Chennai - 600013, Tamilnadu, India

Tel :  91-44-25952953

Fax:  91-44-25976337

 

VADODARA

F.3, First Floor, Taksh Complex - 2, Vasna Road, Vadodara – 390017, Gujarat, India

Tel : 91-265-2250500

Fax : 91-265-22250500

 

JAIPUR

408, 4th Floor, Crystal Mall, Banipark, Jaipur - 302015, Gujarat, India

Tel.: 91-41-2209873/ 4002954/ 5109873

Fax: 91-41-4027560

 

 

 

DIRECTORS

 

AS ON 21.09.2012

 

Name :

Mr. Umesh Shahra

Designation :

Managing director

Address :

28, Old Palasia, A.B. Road, Indore - 452018, Madhya Pradesh, India

Date of Birth/Age :

17.06.1963

Qualification :

B. Pharma (Hons.) PGDBM (IIMA)

Date of Appointment :

29.08.2011

PAN No.:

AMBPS5571M

DIN No.:

00061312

 

 

Name :

Mr. Arjun Zalani

Designation :

Whole-time director

Address :

27/B, Sector-A, Slice-6, Scheme No.78, Indore - 452010, Madhya Pradesh, India

Date of Birth/Age :

26.11.1971

Qualification :

B. E (Electronics), MBA

Date of Appointment :

27.09.2012

PAN No.:

AABPZ0825D

DIN No.:

00848477

 

 

Name :

Mr. Kailashchandra Shahra

Designation :

Director

Address :

29, Old Palasia, A.B. Road, Indore - 452018, Madhya Pradesh, India

Date of Birth/Age :

31.01.1938

Qualification :

B. Com

Date of Appointment :

01.02.2005

PAN No.:

ABJPS9987Q

DIN No.:

00062698

 

 

Name :

Mr. Shambunath Sadawarti

Designation :

Director

Address :

501, Gyan Sagar Apartment, Sanchar Nagar Extension, Indore - 452016, Madhya Pradesh, India

Date of Birth/Age :

18.03.1947

Qualification :

B. E. (Mech), PGDIM

Date of Appointment :

16.02.2004

DIN No.:

00031966

 

 

Name :

Mr. Navin Khandelwal

Designation :

Director

Address :

5/1, Saket Nagar, Indore - 452001, Madhya Pradesh, India

Date of Birth/Age :

22.04.1973

Qualification :

CA

Date of Appointment :

01.07.2004

DIN No.:

00134217

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashutosh Mishra

Designation :

Secretary

Address :

21A, Krishi Vihar Colony, Near Bakhtawar Ram Nagar, Indore - 452001, Madhya Pradesh, India

Date of Birth/Age :

21.01.1964

Date of Appointment :

28.03.2009

PAN No.:

AFDPM4265M

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 21.09.2012

 

Names of Shareholders

 

 

No. of Shares

Umesh Shahra

 

80800

Neeta Shahra

 

1250

Arjun Zalani

 

6100

Manish Parikh

 

1000

Shambhu Nath Sadawani

 

1000

Saket Barodia

 

1000

Vijay Kumar Mahajan and Seema Mahajan

 

5000

Vijay Kumar Mahajan and Varun Mahajan

 

3125

Rohini Forex Private Limited, India

 

3721028

Ruchi Acroni Industries Limited, India

 

663000

Ruchi Global Limited, India

 

1240000

Ruchi Infrastructure Limited, India

 

2995100

Ruchi Corporation Limited, India

 

1135800

Ruchi Stock and Securities Private Limited, India

 

3314873

Ruchi Real Estate Developers Private Limited, India

 

3459112

Ruchi Growth Fund Private Limited, India

 

2436915

Rohini Commodities Private Limited, India

 

12412118

Mandhana Leafin Limited, India

 

2757587

Lucas Meyer Industries Private Limited, India

 

2761500

Iron Global Limited, India

 

54100

Swastika Worldwide Private Limited, India

 

20000

Snehdeep Impex Private Limited, India

 

825233

SSP Finvest Private Limited, India

 

625233

Trans Siberian Industries Limited, UAE

 

4709807

Sino Asian Resources Industries Limited, Hong Kong

 

5866397

Kyanite Economic and Development Limited, Singapore

 

4274657

Global Connects Instrument Limited, UAE

 

4228046

Mitsui and Company Limited, Japan

 

7190691

Mitsui and Company India Private Limited, India

 

2151608

Mitsui and Company (Asia Pacific) Pte. Limited, Singapore

 

5057646

 

 

 

Total

 

 

71999726

 

 

AS ON 21.09.2012

 

Equity Share Breakup

Percentage of Holding

Category

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

46.50

Bodies corporate

53.37

Directors or relatives of directors

0.12

Other top fifty shareholders

0.01

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Steel Products i.e. CR Coils / Sheets, GP Coils / Sheets and PPGL Coils etc.

 

 

Products/ Services :

ITC Code No.

Product Descriptions

72104100

Corrugated Products, Otherwise

PLTD / Coated With Zinc

72092820

Sheets of Flt Rld Products Not In Coils Not Further Worked Thn Cold Rld Of Thickens Less Than 0.5 Mm

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         Corporation Bank Limited, Mahavir Empire, 63, M.G. Road, Indore - 452001, Madhya Pradesh, India

 

·         IDBI Bank Limited, Corporate Branch, Upper Ground Floor, Captain C.S. Nayudu Arcade, 10/2, Old Palasia, Indore - 452001, Madhya Pradesh, India

 

·         Jammu and Kashmir Bank Limited, Block "D", 1st Floor, North Side, Shiv Nagar Estates, Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

 

·         State Bank of Indore, Industrial Finance Branch, Khel Prashal, Indore - 452003, Madhya Pradesh, India

 

·         Punjab National Bank, Mid Corporate Branch, GG Tower, MG Road, Indore - 452007, Madhya Pradesh, India

 

·         IDBI Bank Limited, 1, Indian Red Cross Socity Building, Red Cross Road, New Delhi - 110001, India

 

·         State Bank of India

·         State Bank of Saurashtra

·         State Bank of Travancore

·         State Bank of Hyderabad

·         State Bank of Patiala

·         State Bank of Bikaner and Jaipur

·         HDFC Bank

·         Oriental Bank of Commerce

·         Bank of India

 

 

Facilities :

 

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Term loans from banks

3734.692

3710.276

SHORT-TERM BORROWINGS

 

 

Working capital loans from banks

1260.608

439.944

Total

 

4995.300

4150.220

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Ashok Khasgiwala and Company

Chartered Accountants

Address :

317, Chetak Centre, “Annexe”, R.N.T. Marg, Indore-452 001, Madhya Pradesh, India

Tel. No.:

91-731-2517341/ 4069301/ 2523134

E-Mail :

ashokkhasgiwala@yahoo.com

Income-tax PAN of auditor or auditor's firm :

AACFA7732P

 

 

Subsidiary company:

Indian Steel SEZ Limited [U74900MH2007PLC173930]

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:

·         Ruchi Strips and Alloys Limited [L27100MH1987PLC142326]

·         Ruchi Acroni Industries Limited [U74999MH1979PLC029075]

 

 

CAPITAL STRUCTURE

 

 

AFTER 21.09.2012

 

Authorised Capital : Rs. 800.000 Millions

 

Issued, Subscribed and Paid-up Capital : Rs. 723.354 Millions

 

 

AS ON 21.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

80,000,000

Equity Shares

Rs. 10/- each

Rs. 800.000 Millions

 

 

 

 

 

Issued, Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

71,999,726

Equity Shares

Rs. 10/- each

Rs. 719.997 Millions

 

 

 

 

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

80,000,000

Equity Shares

Rs. 10/- each

Rs. 800.000 Millions

 

 

 

 

 

Issued, Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

71,201,652

Equity Shares

Rs. 10/- each

Rs. 712.017 Millions

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

712.017

610.000

(b) Reserves and Surplus

 

3853.968

2832.511

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

273.283

Total Shareholders’ Funds (1) + (2)

 

4565.985

3715.794

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

3734.692

3710.276

(b) Deferred tax liabilities (Net)

 

148.867

146.497

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

10.598

5.919

Total Non-current Liabilities (3)

 

3894.157

3862.692

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

2639.248

1799.688

(b) Trade payables

 

7020.618

3530.882

(c) Other current liabilities

 

1926.509

1749.351

(d) Short-term provisions

 

131.760

124.850

Total Current Liabilities (4)

 

11718.135

7204.771

 

 

 

 

TOTAL

 

20178.277

14783.257

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

7719.044

5023.094

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

1731.860

2379.077

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

0.503

0.503

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

755.197

1058.147

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

10206.604

8460.821

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

39.898

130.940

(b) Inventories

 

4411.168

3326.549

(c) Trade receivables

 

3271.273

1391.857

(d) Cash and cash equivalents

 

996.388

423.600

(e) Short-term loans and advances

 

1173.990

1027.650

(f) Other current assets

 

78.956

21.840

Total Current Assets

 

9971.673

6322.436

 

 

 

 

TOTAL

 

20178.277

14783.257

 

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

572.500

2] Share Application Money

 

 

18.950

3] Reserves and Surplus

 

 

2286.996

4] (Accumulated Losses)

 

 

(14.724)

NETWORTH

 

 

2863.722

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

2733.881

2] Unsecured Loans

 

 

2250.662

TOTAL BORROWING

 

 

4984.543

DEFERRED TAX LIABILITIES

 

 

25.363

 

 

 

 

TOTAL

 

 

7873.628

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

3194.662

Capital work-in-progress

 

 

1941.257

 

 

 

 

INVESTMENT

 

 

56.002

DEFERRED TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS and ADVANCES

 

 

 

 

Inventories

 

 

1893.836

 

Sundry Debtors

 

 

1253.826

 

Cash and Bank Balances

 

 

722.120

 

Other Current Assets

 

 

0.000

 

Loans and Advances

 

 

698.602

Total Current Assets

 

 

4568.384

Less : CURRENT LIABILITIES and PROVISIONS

 

 

 

 

Sundry Creditors

 

 

1718.603

 

Other Current Liabilities

 

 

97.369

 

Provisions

 

 

71.071

Total Current Liabilities

 

 

1887.043

Net Current Assets

 

 

2681.341

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.366

 

 

 

 

TOTAL

 

 

7873.628

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

 

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

23989.440

14066.078

11167.945

 

 

Other Income

92.151

78.071

123.666

 

 

TOTAL                                     (A)

24081.591

14144.149

11291.611

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

10685.367

6783.800

9906.640

 

 

Purchases of stock-in-trade

11276.821

5338.715

--

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(1079.596)

(105.751)

(384.202)

 

 

Employee benefit expense

225.857

175.036

--

 

 

Other expenses

1487.102

1083.320

988.742

 

 

Exceptional items

0.000

(57.506)

--

 

 

TOTAL                                     (B)

22595.551

13217.614

10511.180

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

1486.040

926.535

780.431

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1172.290

330.621

332.535

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

313.750

595.914

447.896

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

278.277

172.474

158.274

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

35.473

423.440

289.622

 

 

 

 

 

Less

TAX                                                                  (H)

3.574

125.702

127.088

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

31.899

297.738

162.534

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

283.014

(14.724)

(177.258)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

314.913

283.014

(14.724)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1100.341

985.341

613.222

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

8639.501

6975.526

4384.752

 

 

Stores and Spares

43.326

14.007

2.111

 

 

Capital Goods

404.345

460.167

424.031

 

TOTAL IMPORTS

9087.172

7449.700

4810.894

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.50

5.18

3.61

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.13

2.11

1.44

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.15

3.01

2.59

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.19

3.41

3.73

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.11

0.10

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.40

1.48

1.74

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.85

0.88

2.42

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT

 

Particulars

31.03.2012

31.03.2011

 

31.03.2010

 

(Rs. In Millions)

 

 

 

 

Current maturities of long-term debt

1301.408

1327.528

NA

 

 

 

 

 

 

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

Yes

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

10419519

23/03/2013

350,000,000.00

STATE BANK OF PATIALA

MID CORPORATE BRANCH, ORBIT MALL, A.B. ROAD, INDORE - 452001, MADHYA PRADESH, INDIA

B73113110

2

10400501

07/01/2013

2,492,800,000.00

STATE BANK OF BIKANER AND JAIPUR

6, KANTI MENSION, MURAI MOHALLA, SANYOGITAGANJ, INDORE - 452001, MADHYA PRADESH, INDIA

B67073114

3

10123996

09/09/2008

6,630,000,000.00

STATE BANK OF INDORE

INDUSTRIAL FINANCE BRANCH, KHEL PRASHAL, RACE COURSE ROAD, INDORE - 452003, MADHYA PRADESH, INDIA

A46403432

4

10147848

29/07/2008

400,000,000.00

PUNJAB NATIONAL BANK

MID CORPORATE BRANCH, SIYAGANJ, INDORE - 452001, MADHYA PRADESH, INDIA

A45770948

5

10114839

14/07/2008

400,000,000.00

PUNJAB NATIONAL BANK

MID CORPORATE BRANCH, SIYAGANJ, INDORE - 452001, MADHYA PRADESH, INDIA

A42329813

6

80038787

19/12/2005

700,000,000.00

CORPORATION BANK

63 M.G. ROAD, REGAL SQUARE, INDORE - 452001, MADHYA PRADESH, INDIA

-

7

80039724

12/11/2005

500,000,000.00

CENTRAL BANK OF INDIA

CORPORATE FINANCE BRANCH, SIYAGANJ, INDORE - 452001, MADHYA PRADESH, INDIA

-

8

90146788

04/11/2004

100,000,000.00

STATE BANK OF SAURASHTRA

MAIN BRANCH, INDORE, MADHYA PRADESH, INDIA

-

9

90146771

21/07/2006 *

150,000,000.00

STATE BANK OF INDORE

INDUSTRIAL FINANCE BRANCH, KHELPRASAL, RACE COURCE ROAD, INDORE - 452003, MADHYA PRADESH, INDIA

-

10

80039723

14/10/2004

500,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, A.B.ROAD, INDORE - 452001, MADHYA PRADESH, INDIA

-

11

90146762

14/10/2004

500,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, A. B. ROAD, INDORE, MADHYA PRADESH, INDIA

-

12

90145418

20/08/2010 *

18,210,000,000.00

STATE BANK OF INDORE

INDUSTRIAL FINANCE BRANCH, KHELPRASHAL, INDORE - 452003, MADHYA PRADESH, INDIA

A94288495

13

90148883

22/06/2013 *

18,298,600,000.00

IDBI BANK LTD.

SPECIALIZED CORPORATE BRANCH, UG - 1 C.S. NAYUDU ARCADE, 10/2 OLD PALASIA, INDORE - 452001, MADHYA PRADESH, INDIA

B79941332

 

* Date of charge modification

 

 

UNSECURED LOANS

 

Unsecured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

SHORT-TERM BORROWINGS

 

 

Borrowing from foreign institutional agencies

1378.640

1359.744

Total

 

1378.640

1359.744

 

 

PERFORMANCE AND PROGRESS

 

During the year, the Company has achieved a turnover of Rs. 24081.590 Million registering a growth of 70.30% as compared to last financial year. However weakening of INR against USD has caused an adverse impact on the profitability of the Company, due to which Profit before tax during the year stood at Rs. 35.47 Million.

 

During the year the Company has successfully launched the Wider Width Galvanized material from its new Galvanizing Line supplied by CMI -FPE. The wider width galvanized material is the product of the future and is in good demand, both in construction and Home appliance segment. Thus with addition of the company’s capability to manufacture the same, we hope to reap the benefits.

 

The Company has also successfully completed the erection and alignment of the Continuous Colour Coated Line supplied by CMI-FPE. The cold trials are on and the line will roll its products in the current financial year to the market. With this the Company has completed the phase II and will have a capacity to produce 600,000 MT/ per annum. The Company has also added Slitting and Cut to Length lines, imported from the quality manufacturers of South Korea, in order to cater to Automotive and Home appliance customers. The said lines have been commissioned and are operational.

 

 

MARKET DEVELOPMENT AND PROGRESS IN AUTO and WHITE GOODS SEGMENT

 

The primary focus of the Company is to produce quality steel and coated steel products focusing on Automotive, Home appliances and Construction sector, which are key areas for development of the country.

 

With the latest state of art technology, ISC is now fully equipped to supply Cold Rolled Steel Coils/sheets for skin panels to auto majors, which are currently being imported in India. Also ISC would be able to produce import substitute Prepainted Steel sheets for Home Appliances. With the expansion the Company will not only save foreign exchange for the country but also be able to minimize dependence on imports for Indian Automotive and Home appliance sectors. Hence ISC product range will definitely help in the growth of Automotive and Home appliances Industries in Gujarat and India too.

 

The Company has already received source approval for its Cold Rolled Steel and Galvanized Steel from Auto Majors like Tata Motors, Bajaj Auto, Ashok Leyland, AMW, Force Motors, General Motors etc. and White Goods majors like Videocon, Samsung, Godrej Boyce, Haier etc.

 

 

MARKET DEVELOPMENT AND PROGRESS IN CONSTRUCTION SEGMENT

 

From ethical practices, aggressive vision and a commitment to excellence, in a very short time the Company has achieved a lot riding on core strengths.

 

We have established a vast distribution network of 265 dealers and 700 plus sub dealers for better servicing to the consumers and 25 nationwide depots for the smooth and effective distribution of material.

 

We are the market leaders in Gujarat and Rajasthan and strong challengers in most of India. Our most popular brands in the name of Indian UltraTuf, Indian Tadka, Indian Makkhan and Indian Coolhave become household names among the consumers.

 

The Company had organized Dealers / retailers meet in order to strengthen the bonding and to create strong relationship with its dealers and retailers. The Company had supported the dealers and retailer to stand out in competition through various branding and sales oriented activities.

 

 

EXPANDING STEEL RETAIL

 

Expanding its retail chain, the Company has established 100 ISC Steel Zones in the year 2011-12 to assure the consumers, the right quality at right price with entire range of Galvanized and Cold Rolled Steel Products. ISC Steel Zones will extend better services, thereby providing value for money to consumers.

 

 

PROSPECTS

 

·         Indian steel industry plays a significant role in the Country’s economic growth. The major contribution directs the attention that the steel is having a stronghold in the traditional sectors, such as infrastructure and construction, automobile, transportation, industrial applications etc. Presently India is the fifth largest producer of steel in the world and is likely to become the second largest producer in the coming years.

 

·         The Indian crude steel production is likely to grow at a CAGR of around 10% during 2010-2013. 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.

 

·         Steel consumption in India will resume its strong growth trends in 2012 and 2013 after the relative slowdown in 2011, according to forecasts released by World Steel Association recently. During its 12th Plan period 2012-2017, India expects an investment of $ one trillion in the infrastructure sector.

 

·         The country has acquired a central position on the global steel map with India having enormous potential and necessary resources, capabilities to become a global supplier of quality steel. Also there exists ample opportunities in the neighbouring regions of Asia, Africa and the Middle East.

 

·         Keeping in view the government incentive plan to stimulate the economic growth by infusing funds in various industries, such as automobile, construction, infrastructure, power etc. the future of the Indian Steel Industry seems to be good.

 

The Company is poised to avail all such opportunities and to meet the growing demands of domestic as well as international markets. With a good acceleration in demand emanating from all segments of the industrial sector, it is expected that the Company will achieve significant position for coated steel products. Given the experience of strong senior management team having substantial exposure in steel industry, value added to implement our strategies, the prospects for sustainable long term growth in our business and consequently shareholders value are tremendous.

 

However, volatility in raw materials prices across the globe especially in commodity market, recession in European economy and fluctuations in the foreign currencies could affect the performance of the Company in terms of profitability. The management is taking appropriate steps to combat the negative impact of these factors.

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant and equipment

·         Furniture and fixtures

·         Vehicles

·         Motor vehicles

·         Office equipment


 

CMT REPORT (Corruption, Money Laundering and Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 63.67

UK Pound

1

Rs. 100.71

Euro

1

Rs. 84.72

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYN

 

 

Report Prepared by :

BVA

 


 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

36

 

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 and 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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.