MIRA
INFORM REPORT
|
Report Date : |
29.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN SPECIAL STEELS LIMITED |
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Registered
Office : |
Vardhman Premises, Chandigarh Road, Ludhiana - 141010, Punjab |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
14.05.2010 |
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Com. Reg. No.: |
16-033930 |
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Capital Investment
/ Paid-up Capital : |
Rs.185.554 Millions |
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CIN No.: [Company Identification
No.] |
L27100PB2010PLC033930 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDV01914D |
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PAN No.: [Permanent Account No.] |
AADCV4812B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Billet, Steel Bars and Rods and Right Bars of Various Categories of special and Alloys Steels. |
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No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (57) |
|
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 |
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Maximum Credit Limit : |
USD 7800000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of VARDHMAN GROUP. It is a well-established company
having fine track record. There seems sharp dip in profitability of the company during the
financial year 2013. However, the rating reflect the managerial and financial support that
company receives for Vardhman group and sound general financial profile. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal 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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1 million
Indian tourists in 2012), Thailand (one million), the United Arab Emirates
().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “AA-” |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
12.03.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A1+” |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
12.03.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Hansraj |
|
Designation : |
Accounts and Finance Department |
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Contact No.: |
91-161-2670707 |
|
Date : |
25.04.2014 |
LOCATIONS
|
Registered Office : |
Vardhman Premises, Chandigarh Road, Ludhiana - 141010, Punjab, India |
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Tel. No.: |
91-161-2228943/ 48 |
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Fax No.: |
91-161-2601048/ 2222616/ 2601040 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Locality : |
Commercial |
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Head Office/
Factory : |
C-58, Focal Point, Ludhiana - 141010, Punjab, India |
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Tel. No.: |
91-161-2670707/ 09/ 5014243/ 44 |
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Fax No.: |
91-161-2670503 |
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Branch Office 1 : |
C-226, Phase VIII, Focal Point, Dhandari Kalan, Ludhiana, Punjab, India |
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Branch Office 2 : |
422 and 423, 4th Floor, B Wing, Jai Ganesh Vision, Akurdi, Pune – 411033, Maharashtra, India |
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Tel. No.: |
91-20-27457345/ 64003585 |
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E-Mail : |
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Branch Office 3 : |
Gate No. 153, Pune-Nashik Highway, Kuruli, Chimbli Phata, Chakan, Pune – 411033, Maharashtra, India |
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Branch Office 4 : |
D-8, Industrial Estate, Opposite Tansi Building, Guindy, Chennai – 600032, Tamilnadu, India |
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Tel. No.: |
91-44-42028631 |
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Fax No.: |
91-44-42028633 |
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E-Mail : |
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Branch Office 5 : |
Village - Fauzi Matkota, Tehsil - Kichha, Distt. - Udham Singh Nagar, Rudrapur – 263153, Uttarakhand, India |
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Branch Office 6 : |
New No. 1/55E, Old No. 1/73 Kamarjar, Salai, Nazaratpet, Poonamallee, Chennai – 600032, Tamilnadu, India |
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Branch Office 7 : |
SPL - 1, Phase - I, Industrial Area, Bhiwadi, Distt.- Alwar – 301019, Rajasthan, India |
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Branch Office 8 : |
Premises of Arisht Spinning Mills, Sai Road, Baddi – 173205, Himachal Pradesh, India |
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Branch Office 9 : |
Plot Nos. 400-401, Block - C, Pioneer Industrial Park, Pathredi, Gurgaon – 123413, Haryana, India |
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Branch Office 10 : |
Survey No. 10/1, Bommasandra Village, Attibale Hubli, Anekal Taluka, Bangalore - 560099, Karnataka, India |
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Branch Office 11
: |
Plot. No. B-10, Industrial Area-III, Meerut Road, Ghaziabad – 201003, Uttar Pradesh, India |
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Branch Office
12: |
5th Floor, Sagar Plaza,
Building 19, Laxmi Nagar, Distt Center Vikas Marg, |
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Tel. No.: |
91-11-22052841/ 22052842/ 22052847 |
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Fax No.: |
91-11-22052845 |
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E-Mail : |
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Branch Office
13: |
263, Sector 24, Faridabad – 121005, Haryana, India |
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Tel. No.: |
91-129-4064591 |
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Fax No.: |
91-129-223 165 |
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E-Mail : |
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Branch Office
14: |
P - 22, CIT Road, Scheme No. IV, 3rd Floor, Flat No 6, Entally Kolkata
– 700014, West Bengal, India |
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Tel. No.: |
91-33-22160474/ 22841475 |
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Fax No.: |
91-33-22491700 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Prafull Anubhai |
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Designation : |
Chairman |
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|
Name : |
Mr. Hansraj |
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Designation : |
Accounts and Finance Department |
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|
Name : |
Mr. Sachit Jain |
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Designation : |
Managing Director |
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Date of Birth/Age : |
47 Years |
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Qualification: |
B. Tech, M. B. A. |
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Experience: |
23 Years |
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Date of Appointment : |
15.03.2011 |
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Name : |
Mr. Rajinder Kumar Jain |
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Designation : |
Director |
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Date of Birth/Age : |
07.02.1939 |
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Qualification : |
Chartered Mechanical Engineer, London |
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Name : |
Mrs. Ramni Nirula |
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Designation : |
Director |
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Date of Birth/Age : |
27.05.1952 |
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Qualification : |
M.B.A. |
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Name : |
Mr. Rajeev Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
19.03.1958 |
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Date of Appointment : |
15.03.2011 |
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Other Directorship : |
· Cosmo Films Limited Dalmia Cement Bharat Limited VIP Industries Limited EIH Limited TVS Capital Funds Limited |
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Name : |
Mr. Mukund Choudhary |
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Designation : |
Director |
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Name : |
Mr. Sanjeev Pahwa |
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Designation : |
Director |
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Date of Birth/Age : |
26.12.1966 |
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Date of Appointment : |
15.03.2011 |
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Other Directorship : |
· Ralson (India) Limited Ram Commercial Enterprises Limited Kosani Finance and Investment Private Limited Shivansi Investments Private Limited Ralco Finance and Investment Private Limited Ralco Tyres Private Limited Ralson Communication Technologies Private Limited |
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Name : |
Mrs. Suchita Jain |
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Designation : |
Director |
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Name : |
Mr. B. K. Choudhary |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Naresh Bansal |
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Designation : |
General Manager |
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Name : |
Ms. Tanu Berry |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
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|
264007 |
1.42 |
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|
13647402 |
73.55 |
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|
13911409 |
74.97 |
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Total shareholding of Promoter and Promoter Group (A) |
13911409 |
74.97 |
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(B) Public Shareholding |
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|
102280 |
0.55 |
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|
12224 |
0.07 |
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|
110148 |
0.59 |
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|
59968 |
0.32 |
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|
284620 |
1.53 |
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|
|
|
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|
383606 |
2.07 |
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|
|
|
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|
1677633 |
9.04 |
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|
2117600 |
11.41 |
|
|
180508 |
0.97 |
|
|
174838 |
0.94 |
|
|
5670 |
0.03 |
|
|
4359347 |
23.49 |
|
Total Public shareholding (B) |
4643967 |
25.03 |
|
Total (A)+(B) |
18555376 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
18555376 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Billet, Steel Bars and Rods and Right Bars of Various Categories of special and Alloys Steels. |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
· Thailand Japan |
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Imports : |
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Products : |
Raw Material |
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Countries : |
Europe |
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Terms : |
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Selling : |
L/C and Cheque |
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Purchasing : |
L/C and Cheque |
PRODUCTION STATUS (AS ON 31.03.2012)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Billets |
MT |
100000 |
99893 |
|
Rolled Bars |
MT |
80400 |
-- |
|
Steel Bars |
MT |
-- |
96780 |
NOTE:
Installed capacity has been certified by the management and not verified by the auditors being a technical matter.
* Including a quantity of 29482 MT processed by others on job basis.
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
800 (Approximately) |
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Bankers : |
· State Bank of India, Focal Point, Ludhiana, Punjab, India HDFC Bank Limited Axis Bank Limited Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.S. Kothari Mehta and Company Chartered Accountants |
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Address : |
Panchkula, Haryana, India |
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Enterprises over which
Key Management Personnel (KMP) is able to exercise significant influence: |
· Vardhman Textiles Limited Vardhman Holdings Limited Vardhman Acrylics Limited Vardhman Nisshinbo Garments Company Limited Vardhman Yarns and Threads Limited VTL Investments Limited VMT Spinning Company Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18555376 |
Equity Shares |
Rs.10/- each |
Rs.185.554
Millions |
|
|
|
|
|
The Aggregate number of shares allotted as fully paid up pursuant to contract(s) without payment being received
in cash in the last five years immediately preceeding the
balance sheet date is NIL.
Equity Shares calls unpaid by directors and officers of the
company is NIL.
Shares held by holding company or its ultimate holding company or subsidiaries or associates of the holding
company or the ultimate holding company in aggregate.
Details of shareholders holding more than 5% shares of the Company
|
Particulars |
As at 31st March, 2013 |
|
|
Number of shares |
% holding in the class |
|
|
Equity shares of Rs. 10/- each fully paid up held by |
|
|
|
Vardhman Textiles Limited |
5825000 |
31.39 |
|
Vardhman Holdings Limited |
3080517 |
16.60 |
|
Adinath Investment and Trading Company |
2522655 |
13.60 |
|
Devakar Investment and Trading Company (Private) Limited |
1108175 |
5.97 |
|
Total |
12536347 |
67.56 |
Note : The Steel Business
undertaking namely ‘Vardhman Special Steels’ was a unit of Vardhman Textiles
Limited (VTXL) till 31.12.2010, and consequent to the order of the Hon’ble High
court of Punjab and Haryana dated 12.01.2011, said undertaking was demerged
from Vardhman Textiles Limited and got vested in the Company from the Appointed
Date i.e. 01.01.2011. As a result, accounting treatment was given to assets and
liabilities of the said undertaking based on the scheme of Arrangement and
Demerger approved by the Hon’ble High Court. In consideration of the assets,
liabilities and reserves being vested in Vardhman Special Steels Limited
(VSSL), VSSL issued 1,27,30,376 equity shares of Rs. 10/- each during the
previous year credited as fully paid-up to the shareholders of VTXL in
proportion of 1 share of VSSL for every 5 shares of VTXL held by shareholders.
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 |
185.554 |
185.554 |
58.250 |
|
(b) Reserves & Surplus |
1766.154 |
1717.699 |
1458.688 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
127.304 |
|
Total
Shareholders’ Funds (1) + (2) |
1951.708 |
1903.253 |
1644.242 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
926.463 |
884.646 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
37.597 |
41.255 |
41.354 |
|
(c) Other long term liabilities |
1.639 |
2.264 |
1.447 |
|
(d) long-term provisions |
4.759 |
4.442 |
3.604 |
|
Total Non-current Liabilities (3) |
970.458 |
932.607 |
46.405 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2144.021 |
1557.278 |
589.905 |
|
(b) Trade payables |
329.926 |
108.862 |
126.446 |
|
(c) Other current
liabilities |
415.719 |
183.650 |
148.614 |
|
(d) Short-term provisions |
17.416 |
23.429 |
14.471 |
|
Total Current Liabilities (4) |
2907.082 |
1873.219 |
879.436 |
|
|
|
|
|
|
TOTAL |
5829.248 |
4709.079 |
2570.083 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
412.398 |
430.612 |
321.628 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
1313.461 |
85.809 |
1.014 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
285.166 |
812.500 |
200.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
199.622 |
130.888 |
11.966 |
|
(e) Other Non-current assets |
11.384 |
2.736 |
21.481 |
|
Total Non-Current Assets |
2222.031 |
1462.545 |
556.089 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
930.000 |
180.000 |
0.000 |
|
(b) Inventories |
1137.031 |
958.289 |
979.825 |
|
(c) Trade receivables |
1022.602 |
1054.859 |
875.476 |
|
(d) Cash and cash
equivalents |
302.749 |
871.126 |
52.853 |
|
(e) Short-term loans and
advances |
182.723 |
159.676 |
104.826 |
|
(f) Other current assets |
32.112 |
22.584 |
1.014 |
|
Total Current Assets |
3607.217 |
3246.534 |
2013.994 |
|
|
|
|
|
|
TOTAL |
5829.248 |
4709.079 |
2570.083 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
4452.387 |
5269.003 |
1130.566 |
|
|
|
Other Income |
55.966 |
22.293 |
1.814 |
|
|
|
TOTAL (A) |
4508.353 |
5291.296 |
1132.380 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2804.458 |
3057.303 |
714.770 |
|
|
|
Changes in inventories of finished goods, work in progress and stock-in-trade |
(254.818) |
(17.135) |
(82.274) |
|
|
|
Employee benefit expense |
213.159 |
225.165 |
34.928 |
|
|
|
Other expenses |
1464.434 |
1479.256 |
332.416 |
|
|
|
Excise Duty on change in Stocks |
48.707 |
24.641 |
5.316 |
|
|
|
TOTAL (B) |
4275.940 |
4769.961 |
1005.156 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
232.413 |
522.066 |
127.224 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
108.671 |
65.980 |
10.428 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
123.742 |
456.086 |
116.796 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
39.828 |
40.592 |
9.531 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
83.914 |
415.494 |
107.265 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
35.459 |
156.483 |
37.639 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
48.455 |
259.011 |
69.626 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
328.637 |
69.626 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
377.092 |
328.637 |
69.626 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
247.643 |
95.845 |
17.252 |
|
|
TOTAL EARNINGS |
247.643 |
95.845 |
17.252 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
895.812 |
720.320 |
176.213 |
|
|
|
Components and Spare Parts |
64.026 |
40.767 |
14.861 |
|
|
|
Capital Goods |
646.726 |
15.814 |
2.701 |
|
|
TOTAL IMPORTS |
1606.564 |
776.901 |
193.775 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
2.61 |
14.15 |
11.95 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd Quarter
|
|
Net Sales |
1266.300 |
1502.500 |
1571.500 |
|
Total Expenditure |
1264.900 |
1540.300 |
1570.900 |
|
PBIDT (Excl OI) |
1.400 |
(37.800) |
0.600 |
|
Other Income |
91.000 |
0.500 |
15.700 |
|
Operating Profit |
92.400 |
(37.300) |
16.300 |
|
Interest |
28.300 |
26.100 |
24.000 |
|
Exceptional Items |
(63.100) |
(53.600) |
0.000 |
|
PBDT |
1.000 |
(117.000) |
(7.700) |
|
Depreciation |
10.000 |
10.100 |
10.000 |
|
Profit Before Tax |
(9.000) |
(127.100) |
(17.700) |
|
Tax |
(3.000) |
(23.500) |
(1.700) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(6.000) |
(103.600) |
(16.000) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(6.000) |
(103.600) |
(16.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.07
|
4.90 |
6.15 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.88
|
7.89 |
9.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.98
|
10.90 |
4.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.22 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.57
|
1.28 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.73 |
2.29 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
58.250 |
185.554 |
185.554 |
|
Reserves & Surplus |
1458.688 |
1717.699 |
1766.154 |
|
Share Application money
pending allotment |
127.304 |
0.000 |
0.000 |
|
Net
worth |
1644.242 |
1903.253 |
1951.708 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
884.646 |
926.463 |
|
Short term borrowings |
589.905 |
1557.278 |
2144.021 |
|
Total
borrowings |
589.905 |
2441.924 |
3070.484 |
|
Debt/Equity
ratio |
0.359 |
1.283 |
1.573 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1130.566 |
5269.003 |
4452.387 |
|
|
|
366.050 |
(15.498) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1130.566 |
5269.003 |
4452.387 |
|
Profit |
69.626 |
259.011 |
48.455 |
|
|
6.16% |
4.92% |
1.09% |
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10322193 |
31/12/2013 * |
875,483,000.00 |
AXIS BANK LIMITED |
PLOT NO. 105, LOWER
GROUND FLOOR, THE BOULEVARD, |
B96597406 |
|
2 |
10308867 |
31/12/2013 * |
660,000,000.00 |
AXIS BANK LIMITED |
BRANCH OFFICE, MALL ROAD, LUDHIANA, PUNJAB - 141001, INDIA |
B97049183 |
|
3 |
10295541 |
31/12/2013 * |
1,700,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B97050108 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
From Related parties |
|
|
|
- Vardhman Textiles Limited |
0.000 |
298.105 |
|
Total |
0.000 |
298.105 |
CORPORATE INFORMATION:
Subject is a Public Limited Company incorporated under the provisions of the Companies Act ,1956 on 14th May, 2010. The Company is engaged in the Manufacturing of Billet, Steel bars and rods and right bars of various categories of special and alloys steels.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
A) BUSINESS REVIEW:
GLOBAL STEEL
OUTLOOK
Globally, the steel industry this year remained plagued by
over capacities and increased imports. The economic slowdown in 2012
unfavourably impacted infrastructure and construction spending. Steel prices improved in
first half of 2012, but declined in the second half due to a glut in imports,
weak demand in Europe and tempering growth in Asia.
Global Steel demand is anticipated to improve gradually in 2013 as
compared to 2012 levels owing to renewed focus on infrastructure spending by
Asian countries which will potentially stabilize steel prices. Improvement in
steel consumption is envisaged in automotive industry as it is most likely to
become localized more and more in countries like India, Thailand, Indonesia and
Vietnam accelerating the demand of steel in these countries. Lot of imports for
automotive steel parts is expected to happen in countries like Germany, Spain
and Turkey.
INDIAN PERSPECTIVE
In 2012-13, India produced around 25 million vehicles against 24.75 million vehicles in 2011-12. Though demand for utility vehicles in the passenger car segment grew marginally, the demand for heavy commercial vehicle was badly hit in 2012-13.
The demand for steel in India is expected to remain muted in the next financial year as compared to 2012-13. The
automotive industry too is not expected to grow much affecting the fortunes of the industry. Stability in commodity
prices coupled with expected drop in crude oil prices will be other contributing factors.
Overall, the future outlook for the steel sector could be positive from third quarter onwards. The steel prices will be competitive as the demand is likely to pick up depending upon the revival in economic growth and the government
measures to ease infrastructure investment rules. The demand for value added products like bright bar, spherodised annealing steel, normalized steel etc. will boost the demand in engineering and auto sector.
COMPANY'S BUSINESS STRATEGY AND FUTURE OUTLOOK
The year 2012-13 was a very difficult year with increased capacities among steel mills and slow down in the auto sector. This affected the sales of the Company and as a result they faced a drop in sales and a much bigger squeeze in margins. This situation is likely to continue atleast for the first half of the year.
The Company, however, believes in the future of high quality niche products and plans to continue to expand in this segment. The Rolling Mill upgradation Project which was undertaken last year is expected to start trial production in June, 2013. There has been an increase in the scope of the project and therefore, the cost has gone up to Rs. 160 crore. With starting of commercial production from the new Rolling Mill, the capacities will increase along with improvements in quality and reduction in cost. There will be reduction in rolls changeover time which shall increase the share of value added products and improve customer satisfaction. They expect the new Rolling Mill to stabilize by July, 2013 and start operating normally thereafter. They are currently focusing on getting volumes and hope to be running at full capacity from October onwards.
Now, the Company is facing shortage in certain value added segments and they are making a plan to invest in some capacity enhancement in this area. In addition, they have applied to the Ministry of Environment for permission to increase the capacity of the furnace to 2 lac tonnes per year from the current 1.25 lac tonnes. Hopefully, they should get this by March, 2014. Once that is available, they will need some more investment to make that possible.
During the year 2012-13, the Company exported around 4,207 MT of alloy steel. In the coming year, the Company is targeting newer export destinations in current market in addition to consolidating and increasing sales in present countries. Further, new approvals are in sight from other global companies which shall add to export volumes for the Company.
FINANCIAL ANALYSIS AND REVIEW OF OPERATIONS:
• PRODUCTION AND SALES REVIEW:
During the year, the Company has registered Revenue from Operations
of Rs. 4947.500 millions as compared to Rs. 5811.900 millions in the previous
year. The exports for the year ended were Rs. 247.600 millions as compared to Rs. 95.800 millions in the previous
year.
• PROFITABILITY:
The Company earned profit before depreciation, interest and tax of Rs.
232.400 millions as against Rs. 522.100 millions in the previous year. After providing for
depreciation of Rs. 39.800 millions (Previous Year Rs. 40.600 millions), interest of Rs.
108.700 millions (Previous Year Rs. 66.000 millions), provision for current tax Rs. 39.100 millions (Previous Year
Rs. 156.600 millions), deferred tax (net of adjustments) Rs. (3.700) millions (Previous Year
Rs. (0.100) million), the net profit from operations worked out to Rs. 48.500 millions as compared to
Rs. 259.000 millions in the previous year.
• RESOURCES UTILISATION:
A) Fixed Assets:
The gross fixed assets (including work-in-progress) as at 31st March, 2013 were Rs. 2285.700 millions as compared to Rs. 1049.700 millions in the previous year.
B). Current assets:
The net current assets as on 31st March, 2013 were Rs.
700.100 millions as against Rs. 1373.300 millions in the previous year.
Inventory level was at Rs. 1137.000 millions as compared to the previous
year level of Rs. 958.300 millions.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
a) Bank Guarantees and Letters of Credit
outstanding |
422.011 |
761.574 |
|
b) Other contingent liabilities |
24.140 |
9.037 |
|
c) Claims Against the Company Not
Acknowledged as Debts |
10.981 |
11.277 |
UNAUDITED FINANCIAL RESULTS FOR QUARTER-30.06.2013
(Rs. In Millions)
|
|
|
Particulars |
Quarter Ended 30-June, 2013 |
|
|
|
|
Unaudited |
|
1 |
|
Income From Operations |
|
|
|
a) |
Net
Sale/Income From Operations (Net of Excise Duty) |
1244.400 |
|
|
b) |
Other
Operating Income |
21.900 |
|
|
|
Total Income from operations (Net) |
1266.300 |
|
2 |
|
Expenses |
|
|
|
a) |
Cost of Materials
Consumed |
736.600 |
|
|
b) |
Purchase
of Stocks- In Trade |
- |
|
|
c) |
Change in
Inventories of Finished Goods, |
(40.800) |
|
|
|
works -in
progress and stock -in- trade |
|
|
|
d) |
Employee
Benefits Expenses |
59.000 |
|
|
e) |
Depreciation
and Amortisation Expense |
10.000 |
|
|
f) |
Power
& Fuel |
170.400 |
|
|
g) |
Other
Expenses |
339.700 |
|
|
|
Total Expenses |
1274.900 |
|
3 |
|
Profit/(Loss)
from Operations before Other Income ,Finance Costs and Exceptional Items (1-2) |
(8.600) |
|
4 |
|
Other
Income |
91.000 |
|
5 |
|
Profit/(Loss)
from ordinary activities before Finance Costs and Exceptional Items (3+4) |
82.400 |
|
6 |
|
Finance
Cost |
28.300 |
|
7 |
|
Profit/(Loss)
from ordinary activities after Finance
Costs but before Exceptional Items (5-6) |
54.100 |
|
8 |
|
Exceptional
Items (refer note-2) |
63.100 |
|
9 |
|
Profit/(Loss)
from ordinary activities before Tax (7-8) |
(9.000) |
|
10 |
|
Tax
Expense |
(3.000) |
|
11 |
|
Net Profit/(Loss)
from ordinary activities after Tax (9-10) |
(6.000) |
|
12 |
|
Extraordinary
Items(Net of Expense) |
- |
|
13 |
|
Net
Profit/ Loss) for the Period(11+12) |
(6.000) |
|
14 |
|
Paid-up
Equity Capital (Face Value Rs. 10/- per share) |
185.600 |
|
15 |
|
Reserve
excluding Revaluation Reserves as per |
|
|
|
|
Balance
Sheet of previous accounting year |
|
|
16 (i) |
|
Earnings
Per Share ( before Extraordinary Items) |
|
|
|
|
( in Rs.)
(not annualized): |
|
|
|
|
(a)Basic |
(0.32) |
|
|
|
(b)
Diluted |
(0.32) |
|
16 (ii) |
|
Earnings
Per Share ( after Extraordinary Items) |
|
|
|
|
( in Rs )
(not annualized): |
|
|
|
|
(a)Basic |
(0.32) |
|
|
|
(b)
Diluted |
(0.32) |
|
|
|
|
|
|
A |
|
PARTICULARS OF SHARE HOLDING |
|
|
1 |
|
Public
Shareholding |
|
|
|
|
-Number of
Shares |
4,643,967 |
|
|
|
-
Percentage of Shareholding |
25.03% |
|
|
|
|
|
|
2 |
|
Promoters
and Promoter Group Shareholding |
|
|
|
|
(a)
Pledged/Encumbered |
|
|
|
|
-Number of Shares |
-- |
|
|
|
Percentage
of Share ( as a% of the total Shareholding of promoter and promoter group) |
-- |
|
|
|
Percentage
of share ( as a% of the total share capital of the company) |
-- |
|
|
|
|
|
|
B |
INVESTORS
COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
- |
|
|
Received during that quarter |
- |
|
|
Disposed of during the quarter |
- |
|
|
Pending Unsolved at the end of the Quarter |
- |
FIXED ASSETS
v
Tangible
Assets
Land
Freehold
Buildings
Plant
and Machinery
Furniture
and Fixtures
Vehicles
Office
equipment
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.60.50 |
|
|
1 |
Rs.101.69 |
|
Euro |
1 |
Rs.83.62 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
57 |
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.