MIRA INFORM REPORT

 

 

Report Date :

19.09.2013

 

IDENTIFICATION DETAILS

 

Name :

RATNAMANI METALS AND TUBES LIMITED

 

 

Registered Office :

17, Rajmugat Society, Naranpura Char Rasta, Ankur Road, Naranpura, Ahmedabad – 380013, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

15.09.1983

 

 

Com. Reg. No.:

04-006460

 

 

Capital Investment / Paid-up Capital :

Rs. 92.831 Millions

 

 

CIN No.:

[Company Identification No.]

L70109GJ1983PLC006460

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMR01519A

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Stainless Steel Pipes and Tubes and Carbon Steel Pipes

 

 

No. of Employees :

12000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 25000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well established company having good track record. It has achieved better growth in its profits during 2013.

 

It has strong financial risk profile, marked by a robust networth.

 

Trade relations are reported as trustworthy. Business is active.  Payments are reported to be regular and as per commitments.

 

The company can be considered good for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

AA- (Long Term Rating)

Rating Explanation

High degree of safety and very low credit risk.

Date

May 11, 2012

 

Rating Agency Name

CRISIL

Rating

A1+ (Short Term Rating)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

May 11, 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mrs. Abha Mishra

Designation :

Account Department

Contact No.:

91-79-27415501

 

 

LOCATIONS

 

Registered/ Sales Office :

17, Rajmugat Society, Naranpura Char Rasta, Ankur Road Naranpura, Ahmedabad – 380013, Gujarat, India

Tel. No.:

91-79-27415501/ 2/ 3/ 4

Fax No.:

91-79-27480999

E-Mail :

info@ratnamani.com

jayantimsanghvi@ratnamani.com

jiten.soni@ratnamani.com

Website :

www.ratnamani.com

 

 

Mumbai Office :

404-B Sukh Sagar Building, N.S Patkar Marg, Chowpatty, Mumbai – 400007, Maharashtra, India

Tel. No.:

91-22-43334555

Fax No.:

91-22-43334575

E-Mail :

info.mumbai@ratnamani.com

 

 

Head Office / Factory 1:

STAINLESS STEEL TUBES AND PIPES DIVISION

 

Survey No.769, Ahmedabad – Mehsana Highway, Village – Indrad, Near Chhatral GIDC, Taluka – Kadi, District – Mehsana, Gujarat, India

Tel. No.:

91-2764-232254/ 232263/ 233766

Fax No.:

91-2764-234105/ 233098

E-Mail :

info.sstp@ratnamani.com

Website :

www.ratnamani.com

 

 

Factory 2:

SAW PIPE DIVISION

 

Plot No.3306-3309, GIDC; Chhatral, Taluka – Kalol, District – Mehsana, Gujarat, India

Tel. No.:

91-2764-232234/ 233919/ 232409

Fax No.:

91-2764-233859

Email :

Info.sp@ratnamani.com

 

 

Factory 3:

KUTCH DIVISION

 

Survey No.474, Village – Bhimasar, Taluka – Anjar, District–Kutch, Gujarat, India

Tel. No.:

91-2836-285538/ 285539

Fax No.:

91-2836-285540

Email :

Info.kutch@ratnamani.com

 

 

Branch Office :

44, C.P. Tank Road, Mumbai – 400004, Maharashtra, India

 

 

Ratnamani Techno Casts Limited (RTCL) :

Plot No.3310, GIDC Estate Chhatral, Phase IV, Ahmedabad – Mehsana Highway, P.O. Chhatral, Taluka Kalol, District Gandhinagar – 382729, Gujarat, India

Tel. No.:

91-2764-233327/ 234488

Fax No.:

91-2764-233165

E-Mail :

info@ratnamanitechnocasts.com

 

 

Sales Office 2 :

404-B, Sukh Sagar Building, N.S. Patkar Marg, Chowpatty, Mumbai – 400007, Maharashtra, India 

 

 

Sales Office 3 :

516, Ansal Chamber, II Bhikaji Cama Place, New Delhi – 110066, India

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. Prakash M. Sanghvi

Designation :

Chairman and Managing Director

Date of Birth/Age :

57 Years

Qualification :

Matriculation

Date of Appointment :

12.06.1989

 

 

Name :

Mr. Jayantilal M. Sanghvi

Designation :

Whole-Time Director

Date of Birth/Age :

55 Years

Qualification :

B.Com (FY)

Experience :

33 Years

Date of Appointment :

12.06.1989

 

 

Name :

Mr. Shantilal M. Sanghvi

Designation :

Whole-Time Director

Date of Birth/Age :

49 Years

Qualification :

Under Graduate

Experience :

31 Years

Date of Appointment :

01.11.1998

 

 

Name :

Mr. Divyabhash Chandrakant Anjaria

Designation :

Director

Date of Birth/ Age :

67 Years

Qualification :

PGDM (Finance) from IIM, Ahmedabad

Experience :

20 years experience with Citibank N. A. out of which 7 years in India and 13 years in Africa, Middle East and Europe. His experience covered Trade Finance, Treasury and Investment Banking and Financial Control Functions. He is a member of the Executive Committees of the Derivatives and Capital Market Segment of the National Stock Exchange of India Limited Mr. Anjaria’s Management Services Firm ‘International Financial Solutions Private Limited’ had advised the Government of Gujarat on developing an International Financial Centre – resulting in the GIFT project in the State.

Other Directorship :
  1. Gujarat State Fertilisers and Chemicals Limited
  2. Gujarat Narmada Valley Fertilisers Company Limited
  3. Gujarat International Finance Tec-city Company Limited
  4. International Financial Solutions Private Limited
  5. Indian Institute of Financial Services Private Limited
  6. Gujarat Techmarkets Private Limited

 

 

Name :

Dr. Vinodkumar Mahavirprasad Agrawal

Designation :

Director

Date of Birth/ Age :

66 Years

Qualification :

MBBS

Experience :

Renowned doctor in practice since last 40 years

 

 

Name :

Mr. Pravinchandra M. Mehta

Designation :

Director

Date of Birth/ Age :

74 Years

Qualification :

B.E. (Mechanical)

 

 

KEY EXECUTIVES

 

Name :

Mrs. Abha Mishra

Designation :

Account Department

 

 

Name :

Mr. Virag Y. Joshi

Designation :

Company Secretary

 

 

Name :

Mr. Malkatha

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2013

 

Category of Shareholder

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

663998

12.48

http://www.bseindia.com/include/images/clear.gifSub Total

663998

12.48

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

663998

12.48

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

428633

8.06

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

157032

2.95

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4071627

76.52

http://www.bseindia.com/include/images/clear.gifSub Total

4657292

87.52

Total Public shareholding (B)

4657292

87.52

Total (A)+(B)

5321290

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

5321290

0.00

 

 

BUSINESS DETAILS

 

Line of Business :               

Manufacturer of Stainless Steel Pipes and Tubes and Carbon Steel Pipes

 

 

Products :

Item Code No. (ITC CODE)

Product Description

 

730640

Stainless Steel Welded Tubes and Pipes

730490

Stainless Steel Seamless Tubes and Pipes (Cold-Drawn)

730690

EFSW Carbon Steel Pipes

730610

Carbon Steel Saw Pipes upto 16” (406.4 mm)

730512

Carbon Steel Saw Pipes Above 16”

 

 

GENERAL INFORMATION

 

No. of Employees :

12000 (Approximately)

 

 

Bankers :
  • Dena Bank
  • Punjab National Bank
  • State Bank of India, Ahmedabad – 380013, Gujarat, India 
  • IDBI Bank Limited
  • ICICI Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWING

 

 

External (Foreign) Commercial Borrowings from Banks

420.175

546.969

SHORT TERM BORROWINGS

 

 

FROM BANKS

 

 

Cash Credit/Export Packing Credit facilities

4.299

3.694

Working Capital Demand Loan

150.000

150.000

Buyer's Credits in Foreign Currencies

0.000

956.916

Total

574.474

1657.579

 

 

External (Foreign) Commercial Borrowing of Rs.289.835 Millions (P.Y. Rs. 355.879 Millions) from ICICI Bank Limited. Hong Kong branch is carrying interest for the first seven years @3M Libor + 1.52% P. A., eighth year @3M Libor + 2.04% PA., ninth year @3M Libor + 2.54% PA. .The loan is repayable in 32 quarterly installments of USD 4,06,250.00 each from 22.07.2008. The loan is secured by an exclusive charge over all the 8 windmills along with related equipments/ machineries situated at Moti Sindholi, Kutch, Gujarat and personal guarantee of Mr. Prakash. M. Sanghvi, Chairman and Managing Director of the Company.

 

External (Foreign) Commercial Borrowing of Rs. 292.693 Millions (P.Y. Rs. 343.533 Millions) from ICICI Bank Limited. Hong Kong branch is carrying interest @ 6M Libor + 4.52% P.A. The loan is repayable in 12 half yearly installments of USD 6,66,666.67 each from 22.07.2011. The loan is secured by an exclusive charge over movable assets in respect of 3Layer PE Coating Line and Offline Welding and Finishing Lines for HSAW plant situated at Survey No. 474, Village Bhimasar, Taluka Anjar, District Kutch.

 

Working Capital Loans are secured by - i) Hypothecation of Inventories, Books Debts, all other movables; ii) Second charge on Fixed Assets of the Company except, a) 8 windmills along with related equipments/ machineries situated at Moti Sindholi, Kutch, Gujarat and, b) movable assets in respect of 3Layer PE Coating Line and Offline Welding and Finishing Lines for HSAW plant situated at Survey No.474, Village Bhimasar, Taluka Anjar, District Kutch; iii) Personal guarantees of Mr. Prakash. M. Sanghvi, Chairman and Managing Director, Mr. Jayanti.M. Sanghvi, Whole-time Director and Sh. Shanti. M. Sanghvi, Whole-time Director, of the Company; iv) Joint equitable mortgage of all immovable properties held as free-hold and leasehold lands of the Company, except leasehold land related to 8 windmills situated at Moti Sindholi, Kutch and 3Layer PE Coating Line and Offline Welding and Finishing Lines for HSAW plant situated at Survey No.474, Village Bhimasar, Taluka Anjar, District Kutch.

 

Additional working capital loans in form of Buyer's Credits in Foreign Currencies of Rs. Nil (P.Y. Rs. 347.065 Millions) from ICICI Bank Limited are secured by i) Hypothecation of Inventories, Books debts, all other movables by way of subservient charge, ii) Personal guarantee of Mr. Prakash. M. Sanghvi, Chairman and Managing Director of the Company.

 

7.3 Other Loans and Advances from banks payable on demand are secured by personal guarantee of Mr. Prakash. M. Sanghvi, Chairman and Managing Director of the Company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name 1 :

Mehta Lodha and Company

Chartered Accountants

Address :

63, Hirabhai Market, Diwan Ballubhai Road, Ahmedabad – 380022, Gujarat, India

 

 

Name 2 :

S.R. Batliboi and Associates

Chartered Accountants

 

 

Cost Auditors :

N.D. Birla and Company

Cost Accountants

 

 

Enterprises owned or significantly influenced by key management personnel or their relatives :
  • Ratnamani Food Products Private Limited
  • Ratnamani Marketing Private Limited
  • Ratnamani Healthcare Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

75000000

Equity Shares 

Rs.2/- each

Rs.150.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

46415609

Equity Shares 

Rs.2/- each

Rs.92.831 millions

 

 

 

 

 

Reconciliation of the Equity Shares outstanding at the beginning and at the end of the reporting period

(Rs. in millions)

Particular

31.03.2013

At the beginning of the year

92.831

Add: Issued during the year- ESOS

0.000

Outstanding at the end of the year

92.831

 

 

At the beginning of the year

46374959

Add: Shares issued on exercise of Employee Stock Options

40650

Equity Shares at the end of the year

46415609

 

Terms/Rights attached to Equity Shares

 

– The Company has only one class of Equity Shares having a par value of Rs.2/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the Shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by Share holders.

 

Details of Shareholders holding more than 5% Equity Shares in the Company

 

Name of the Shareholder

 

No. of Shares

% held

Nalanda India Equity Fund Limited

3906664

8.42%

Prakash M. Sanghvi

3111668

6.70%

Jayanti M. Sanghvi

2506435

5.40%

 

 

Shares Reserved for issue under option

 

The Company reserved issuance of 2250000 Equity Shares of Rs.2/- each for offering to eligible employees of the Company under Employees Stock Option Scheme 2006 at a price of Rs.59.40 per option plus all applicable taxes, as may be levied in this regard on the Company. The options were granted on 31st October, 2006 and have vested completely. Out of the reserved Equity Shares, 1415609 Equity Shares have been issued till date. The maximum exercise period is 8 years from the date of grant of options.

 

 

 

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

92.831

92.831

92.750

(b) Reserves & Surplus

6374.309

5232.024

4277.107

(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)

6467.140

5324.855

4369.857

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

420.175

546.969

612.680

(b) Deferred tax liabilities (Net)

399.587

356.642

536.819

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

819.762

903.611

1149.499

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

772.569

2198.394

1783.395

(b) Trade payables

1005.979

955.126

1978.949

(c) Other current liabilities

890.720

549.192

514.516

(d) Short-term provisions

330.709

212.647

154.402

Total Current Liabilities (4)

2999.977

3915.359

4431.262

 

 

 

 

TOTAL

10286.879

10143.825

9950.618

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3875.783

3645.504

3461.939

(ii) Intangible Assets

29.065

22.282

24.271

(iii) Capital work-in-progress

228.558

283.296

121.789

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.090

0.084

0.073

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

89.484

63.535

65.635

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

4222.980

4014.701

3673.707

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

291.052

65.044

70.014

(b) Inventories

2327.343

2838.061

3518.056

(c) Trade receivables

2511.887

2288.886

1747.180

(d) Cash and cash equivalents

600.359

706.911

474.123

(e) Short-term loans and advances

315.664

207.848

467.215

(f) Other current assets

17.594

22.374

0.323

Total Current Assets

6063.899

6129.124

6276.911

 

 

 

 

TOTAL

10286.879

10143.825

9950.618

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

12011.275

12217.402

8136.728

 

 

Other Income

182.724

58.339

226.568

 

 

TOTAL                                     (A)

12193.999

12275.741

8363.296

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Raw Materials Consumed

7468.283

7871.654

5581.018

 

 

Purchase of Stock-in-trade

47.660

34.985

156.025

 

 

Changes in Inventories of Finished Goods, Work-in-Process

(117.772)

47.811

(455.105)

 

 

Employee Benefits Expense

721.198

567.471

492.583

 

 

Other Expenses

1513.426

1771.695

877.399

 

 

TOTAL                                     (B)

9632.795

10293.616

6651.920

 

 

 

 

 

Less

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

2561.204

1982.125

1711.376

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

121.366

165.599

184.479

 

 

 

 

 

 

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

2439.838

1816.526

1526.897

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

424.725

424.915

399.946

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

2015.113

1391.611

1126.951

 

 

 

 

 

Less

TAX                                                                  (H)

655.613

277.192

295.216

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1359.500

1114.419

831.735

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1171.318

718.735

521.746

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

600.000

500.000

500.000

 

 

Proposed Dividend with dividend tax

217.215

161.836

134.746

 

BALANCE CARRIED TO THE B/S

1713.603

1171.318

718.735

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export at F.O.B. value

3437.626

2885.870

500.079

 

TOTAL EARNINGS

3437.626

2885.870

500.079

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2467.397

3257.849

4507.351

 

 

Components and Spare Parts

148.454

50.892

15.809

 

 

Capital Goods

238.315

216.386

214.559

 

TOTAL IMPORTS

2854.166

3525.127

4737.719

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

29.29

24.02

17.98

 

- Diluted

29.14

23.90

17.89

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
11.15

9.08

9.95

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
16.78

11.39

13.85

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
20.03

14.11

11.47

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.31

0.26

0.26

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
0.18
0.52

0.55

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.02

1.57

1.42

 

 

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

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

Yes

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

 

LITIGATIONS DETAILS

 

HIGH COURT OF GUJARAT

STAMP NUMBER No. 2263 of 2013 To STAMP NUMBER No. 2264 of 2013

 

Status : PENDING                                                                                             CCIN No : 001087201302263

 

Last Listing Date:

 

Coram:

 

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX CENTRAL II

MRS MAUNA M BHATT for: null http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

 

S.NO.

Name of the Respondant

Advocate On Record

1

RATNAMANI METALS AND TUBES LIMITED

 

 

Presented On

: 26/08/2013

Registered On

-

Bench Category

-

District

: AHMEDABAD

Case Originated From

: THROUGH ADVOCATE

Listed

: 0 times

Stage Name

: -

 

Office Objection

 

Filing Stage
Filing Stage
Filing Stage
Filing Stage
Filing Stage
Filing Stage
Filing Stage

WHETHER INDEX-CUM-CHRONOLOGY OF DOCUMNETS AND EVENTS FILED ?

WHETHER PROPER & FULL COURT FEE IS PAID ?

WHETHER CERTIFIED COPIES FILED ? APPELLATE JUDGEMENT

WHETHER PAGING IS DONE ?

WHETHER II SET FILED ?

WHETHER COPIES ARE LEGIBLE AND WHETHER TYPED COPIES OF HAND WRITTEN ANNEXURES FILED ?

WHETHER COPIES ARE TRUE COPIES SO SIGNED BY ADVOCATE ?

 

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

26/08/2013

APPEARANCE NOTE

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

0

MRS MAUNA M BHATT(174) for P:1

2

26/08/2013

MEMO OF APPEAL/PETITION/SUIT

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

20

MRS MAUNA M BHATT(174), for P:1

 

 

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2013

As on

31.03.2012

SHORT TERM BORROWINGS

 

 

FROM BANKS

 

 

Other Loans and Advances

 

 

Export Packing Credit Facility

0.000

180.252

Buyer's Credits in Foreign Currencies

618.270

903.276

FROM OTHERS

 

 

Unsecured Loans from Related Parties

0.000

4.256

Total

618.270

1087.784

 

 

 

CORPORATE INFORMATION

 

Subject is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing of stainless steel pipes and tubes and carbon steel pipes at Kutch, Indrad and Chhatral in the state of Gujarat. The Company caters to both domestic and international markets. The Company also operates a mobile plant at Koradi (Maharashtra) as on year end.

 

 

REVIEW OF OPERATIONS

 

GENERAL

 

The year witnessed slowdown in growth and more particularly, industrial growth, global economic and financial conditions remained troubled. Investment and saving rates have come down. The implementation of projects has slowed. Inflation continued to remain high. The current account deficit also remained a source of concern. Further, the slow pace of growth has depressed profitability, stretched balance sheets, and weakened sentiment and expectations.

 

OPERATIONS

 

The Company manufactures Stainless Steel Tubes and Pipes and Carbon Steel Pipes in wide size ranges for wide spectrum of applications in various industries including Oil and Gas explorations. Refineries and Petrochemicals, Power industries. Chemical, Fertilizer, Desalination, Atomic energy, Water and Sewerage, Paper and Pulp industries etc. The year witnessed tremendous downward growth in the key sectors i.e. Oil and Gas and Power due to various reasons. The scenario with regard to the said sectors was not different worldwide, as there was a severe pressure in other part of the globe too. There were severe constraints in the projects being implemented in time, not only in India but elsewhere in the world. The scenario for the sunrise sector, i.e. Power sector in India has gone through very bad phase and the Company saw many projects being put on hold for various reasons such as environmental clearances, non-availability of coal supply agreement etc. Again, due to the slowdown in the Europe, there was a lot of pressure on pricing. The Company undertook all business initiatives to optimise its capacity utilisation. There has been optimum capacity utilisation in SS division vis-a-vis moderate in CS division on account of fierce competition and overall scenario.

 

FINANCIAL PERFORMANCE

 

Despite the challenging scenario, the Company continued to be successful and has performed well; the performance has established a new milestone for the Company. The major factors attributable to this include strong business initiatives strengthened with the sound domain knowledge, consistent product quality aligned to customer expectations, product mix, captive skills partnered with cost consciousness and persistent focus on efficiencies.

 

During the year 2012-13, revenues from operations were Rs. 12011.275 Millions, though reduced marginally but PBT increased by 44.80% from Rs. 1391.611 Millions to Rs. 2015.113 Millions, and profit after tax surged 44.15% from Rs. 943.132 Millions to Rs.1359.500 Millions. EPS went up by 21.92% from Rs.23.90 to Rs.29.14, strengthening shareholder's value.

 

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRIAL SCENARIO

 

The global economy continued to struggle in 2012-13 even after four years post eruption of the global financial crisis and has witnessed growth estimates cut, transfer of economic power from developed to emerging economies, political and economic turmoil, sovereign debt crisis in the Eurozone which has impacted the business across the globe and all these factors has contributed further towards slowing down of recovery across the globe. The global economic growth is expected to strengthen gradually through 2013, averaging 3.5% on an annual basis. A further slrengthening to 4.1% is projected for 2014, assuming recovery takes a firm hold in the Euro zone economy.

 

 

The Indian economy has also experienced significant slowdown during the year because of external and internal factors. The performance of advanced economies continues to weigh on India's growth story coupled with domestic issues. At the end of the fiscal year, the actual growth rate was at around 5.0% which was much lower than what was projected. It is expected that the Indian economy will grow moderately between 5.4% to 5.8% in 2013-14.

 

 

The pipeline infrastructure is crucial for growth for any economy and particularly for countries like India, considering its vast geographical area and lower pipeline penetration level. Indian pipe industry is catering to major demand of the regions like Middle East, US and Europe among others due to its location and global accreditations. The year was challenging for the Indian pipe industry on account of excess capacities being developed by the companies over the years vis-a-vis demand, higher input and finance costs which ultimately lead to pressure on margins. The situation is expected to continue in corning years also and may be there for one or two more years. However, it is expected that the demand for the Indian pipe industry will improve and remain healthy over the long term on the back of the growing demand from infrastructure projects, higher oil exploration and production activities, energy requirements, overall development etc.

 

Similarly, investment in refineries, petrochemicals and power sectors is expected to pick up once again in next 2 or 3 years' time, looking to increase in demand and current deficit in availability of power. Fertiliser industry is also one where investment within the country has to start sooner than later to reduce dependence on imports. All these sectors are big users of SS family tubular products.

 

The Company's performance in the year 2012-13 was one of its best so far despite all the negatives. However, the currently existing market conditions are not very good and any significant improvement is not expected to happen in near future within the country. Though the Company is having a healthy order booking position and all efforts are being made to see that the position continues to remain better than industry average, a lot will depend on the steps being taken by the Central Government on kick starting the economy.

 

OUTLOOK

 

The Company has been preferred supplier for many leading companies and was involved in several national and international projects. It has earned the customers' preference. The Company has emerged as a one stop source of pipes and tubes for an array of industrial applications. The Company's fortunes are linked to capex in industries like Refineries, Petrochemicals, Power, Fertiliser, etc. where investment on continuous basis has been there within the country and internationally also. We expect regular demand from these sectors in future also. However, the performance will depend on the overall economic condition.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2013

(Rs. in millions)

31.03.2012

(Rs. in millions)

a) Bills discounted and not matured

15.902

17.876

b) ESI Liability (excluding interest leviable, if any)

21.817

19.686

c) Consolidated Tax payable to GIDC, Chhatral

0.633

1.783

d) Disputed Statutory Claims/levies for which the Company has preferred appeal in respect of (excluding interest leviable, if any) :

 

 

- Income tax

7.784

--

- Excise Duty

164.715

185.146

- Central Sales Tax*

847.479

--

 

* The Custom Department has raised a demand of Rs.847.479 Millions based on its interpretation of Import license condition and resultanat breach of the same by the company. The company is in the process of filing an appeal before the appellate tribunal. The Company has taken an external opinion in the matter based on which the management is of the view that no liabilities shall arise on the Company.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED ON 30th JUNE, 2013

 

Rs. In Millions

 

 

 

QUARTER ENDED

Sr. No.

 

Particulars

30.06.2013

(Unaudited)

1

 

Income from Operations

 

 

a)

Net Sales (Net of Excise Duty)

2753.248

 

b)

Other Operating Income

157.610

 

 

Total Income ( 1a+1b )

2910.858

2

 

Expenses

 

 

a)

Cost of Materials Consumed

1781.098

 

b)

Purchases of Stock-in-trade

22.945

 

c)

Change in inventories of Finished Goods, work-in-progress and stock-in- trade

(20.829)

 

d)

Employee benefit expenses

197.521

 

e)

Depreciation and amortisation expenses

107.510

 

f)

Other Expenditure

361.987

 

 

Total expenses

2450.232

3

 

Profit from Operations before Other Income, finance cost and Exceptional Items (1-2)

460.626

4

 

Other Income

30.422

5

 

Profit from Ordinary activities before finance cost and Exceptional Items

(3+4)

491.048

6

 

Finance cost

20.308

7

 

Profit from Ordinary activities after finance cost but before Exceptional Items (5-6)

470.740

8

 

Exceptional Items

-

9

 

Profit from Ordinary Activities before Tax ( 7-8)

470.740

10

 

Tax Expenses

170.537

11

 

Net Profit from Ordinary Activities after tax ( 9-10)

300.203

12

 

Prior period items

-

13

 

Net Profit from Ordinary Activities (11-12)

300.203

14

 

Paid up Equity Share Capital Face Value Rs. 2/- per share

92.831

15

 

Reserves excluding Revaluation Reserve

(as per Balance Sheet of previous accounting year)

 

16

 

Earnings per Share (EPS) before and after Extraordinary Items for the period and for the previous year (in Rs., Not annualised)

 

 

 

Basic

6.47

 

 

Diluted

6.44

A

PARTICULARS OF SHAREHOLDING

 

 

1

Public Shareholding

 

 

 

Number of Shares

1,85,49,413

 

 

Percentage of Shareholding

39.96%

 

2

Promoters and Promoter Group Shareholding

 

 

a)

Pledged / Encumbered

 

 

 

Number of Shares

4,00,000

 

 

Percentage of Shares (as a % of the total shareholding of Promoter and Promoter Group)

1.44%

 

 

Percentage of Shares (as a % of the total share capital of the Company)

0.86%

 

b)

Non-Encumbered

 

 

 

Number of Shares

2,74,66,196

 

 

Percentage of Shares (as a % of the total shareholding of Promoter and Promoter Group)

98.56%

 

 

Percentage of Shares (as a % of the total share capital of the Company)

59.18%

B

INVESTORS COMPLAINTS

 

 

 

Pending at the beginning of the quarter

-

 

 

Received during the quarter

-

 

 

Disposed of during the quarter

-

 

 

Remaining unresolved at the end of the quarter

-

 

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE FIRST QUARTER ENDED ON 30th JUNE, 2013

Rs. In Millions

Sr. No.

                                                      

QUARTER ENDED

 

Particulars

30.06.2013

(Unaudited)

1

Segment Revenue

 

 

a. Steel Tubes and Pipes

2871.472

 

b. Windmills

39.386

 

Total

2910.858

 

Less:- Inter segment Revenue

-

 

Net Sales / Income from Operations

2910.858

2

Segment Results (Profit before Interest and Tax)

 

 

a. Steel Tubes and Pipes

488.479

 

b. Windmills

17.826

 

Total

506.305

 

Add:- Interest & Dividend Income

30.101

 

Less:- Foreign Exchange (Gain) / Loss on Buyers Credit (net)

45.358

 

Less:- Interest & Finance charges

20.308

 

Profit before tax

470.740

3

Capital Employed (Segment Assets - Segment Liabilities)

 

 

a. Steel Tubes and Pipes

6292.937

 

b. Windmills

7,66.133

 

c. Unallocable

(291.727)

 

Total

6767.343

 

 

Notes:

 

1)     The aforesaid results, as reviewed by the Audit Committee, were approved by the Board of Directors in its meeting held on 12th August, 2013.

 

2)     The Statutory Auditors have carried out limited review of the above financial results.

 

3)     Figures of previous periods have been regrouped, wherever considered necessary to make them comparable.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10178252

16/09/2009

1,217,000,000.00

ICICI BANK LIMITED

9TH FLOOR, JMC HOUSE, OPP. PARIMAL GARDEN, AHMEDABAD, Gujarat - 380006, INDIA

A70863808

2

10137333

15/01/2009

396,000,000.00

3i Infotech Trusteeship Services Limited

3rd to 6th floor, International Infotech Park,, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai, Maharashtra - 400703, INDIA

A54501564

3

10063901

03/08/2007

531,960,000.00

UNIT TRUST OF INDIA INVESTMENT ADVISORY SERVICES L IMITED

UTI TOWER GN BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, Maharashtra - 400051, INDIA

A21174933

4

80001941

21/04/2009 *

3,650,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, "PARAMSIDDHI" COMPEX, OPP. V. S. HOSPITAL, ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA

A62080056

 

 

 

FIXED ASSETS:

 

Tangible Assets

  • Lease Hold Land
  • Freehold Land
  • Buildings
  • Plant and Machinery
  • Furniture and Fixtures
  • Office Equipments
  • Vehicles

 

Intangible Assets

  • Software

 

 

CMT REPORT (Corruption, Money Laundering & 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.63.14

UK Pound

1

Rs.100.48

Euro

1

Rs.84.37

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

66

 

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

 

 

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.