|
Report Date : |
11.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
910, Ansal Bhawan, 16 KG Marg, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.06.2013 |
|
|
|
|
Date of Incorporation
: |
09.03.1989 |
|
|
|
|
Com. Reg. No.: |
55-035409 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.804.625 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65993DL1989PLC035409 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject engaged in power ancillary equipment and engineering fabrication businesses |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 26730000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Profitability of the company is low. However, the rating takes into consideration company’s improved
operational performance and fair liquidity profile of the company. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Ms. Ritika |
|
Designation : |
Company Secretary |
|
Contact No.: |
91-11-41525361 |
|
Date : |
08.08.2014 |
LOCATIONS
|
Registered Office : |
910, Ansal Bhawan 16, K.G. Marg, New Delhi – 110001, India |
|
Tel. No. : |
91-11-41525361 / 2375286 / 90 / 91 |
|
Fax No. : |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Village - Sarai Banjara, P.O. - Basant Pura, Tehsil - Rajpura, Distt. – Patiala - 140401 Punjab, India |
DIRECTORS
As on 30.06.2013
|
Name : |
Mr. Ashish Pandit |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Mahesh Ochani |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Sunil Kumar |
|
Designation : |
Director |
|
Date of Birth : |
08.08.1970 |
|
Qualification : |
B. Com |
|
Date of Appointment
: |
31.12.2011 |
|
|
|
|
Name : |
Mr. Avijit Banerjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D.S Chahal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rakesh Vij |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Ms. Ritika |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8285865 |
71.35 |
|
|
8285865 |
71.35 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
8285865 |
71.35 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
924656 |
7.96 |
|
|
|
|
|
|
2166326 |
18.66 |
|
|
235500 |
2.03 |
|
|
153 |
0.00 |
|
|
150 |
0.00 |
|
|
3 |
0.00 |
|
|
3326635 |
28.65 |
|
Total Public shareholding (B) |
3326635 |
28.65 |
|
Total (A)+(B) |
11612500 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
11612500 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject engaged in power ancillary equipment and engineering fabrication businesses |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
Bankers : |
Indian Overseas Bank |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
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Facilities : |
NOTE: LONG TERM
BORROWINGS Term Loans are secured by equitable mortgage of all immovable properties of the Company and hypothecation of movable assets, save and except the charge in favour of Banks and Financial Institutions over inventories and book debts to secure working capital limits. SHORT TERM
BORROWINGS Working capital facilities are secured by hypothecation of raw material, semi-finished goods, stock-in process, consumable stores and book debts of the company. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
A.C. Gupta and Associates Chartered Accountants |
|
Address : |
New Delhi, India |
|
|
|
|
Associates : |
¨ ARGL Limited ¨ ARGL Limited |
|
|
|
|
Holding Company : |
¨ WLD Investments Private Limited |
CAPITAL STRUCTURE
As on 30.06.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
|
70000000 |
Preference Shares |
Rs.10/- each |
Rs.700.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15462500 |
Equity Shares |
Rs.10/- each |
Rs.154.625 Millions |
|
65000000 |
1% Non-Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.650.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.804.625
Millions |
TERMS OF
REDEMPTION OF PREFERENCE SHARES
Preference Shares will not be redeemed before 11 years & not later than 15 years from the date of allotment i.e May 2013 at such premium as may be decided by the board of Directors in accordance with the provisions of Companies Act, 1956 or any re-enactment thereof.
RECONCILIATION OF SHARE
CAPITAL
The reconciliation of the number of Equity shares outstanding and the amount of Equity share capital as at June 30, 2013 is set out below:
|
Particulars |
30.06.2013 |
|
|
|
Number of
Shares (In lacs) |
Rs. In
Millions |
|
Number of shares at the beginning |
154.63 |
154.625 |
|
Add : Shares Issued |
-- |
-- |
|
Number of Shares at the end |
154.63 |
154.625 |
The reconciliation of the number of Preference shares outstanding and the amount of Preference share capital as at June 30, 2013 is set out below:
|
Particulars |
30.06.2013 |
|
|
|
Number of
Shares (In lacs) |
Rs. In
Millions |
|
Number of shares at the beginning |
-- |
-- |
|
Add : Shares Issued |
650.000 |
650.000 |
|
Number of Shares at the end |
650.000 |
650.000 |
Details of Persons Holding More Than 5% Of
Share Capital
|
Particulars |
30.06.2013 |
|
|
|
Number of
Shares (In lacs) |
% of Holding |
|
Equity Shares |
|
|
|
WLD Investments Private Limited |
75.21 |
48.64% |
|
|
|
|
|
Preference Shares |
|
|
|
WLD Investments Private Limited |
650.00 |
100% |
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
804.625 |
154.625 |
154.625 |
|
(b) Reserves & Surplus |
5879.393 |
27.453 |
11.125 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
2000.000 |
1615.000 |
|
Total
Shareholders’ Funds (1) + (2) |
6684.018 |
2182.078 |
1780.750 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2803.720 |
3071.800 |
369.999 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.525 |
0.151 |
|
(c) Other long term liabilities |
100.849 |
0.000 |
0.000 |
|
(d) long-term provisions |
3.270 |
3.101 |
2.058 |
|
Total Non-current Liabilities (3) |
2907.839 |
3075.426 |
372.208 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
108.290 |
0.000 |
0.000 |
|
(b) Trade payables |
33.162 |
100.992 |
97.837 |
|
(c) Other current
liabilities |
322.061 |
123.014 |
1.344 |
|
(d) Short-term provisions |
1.048 |
0.000 |
0.434 |
|
Total Current Liabilities (4) |
464.561 |
224.006 |
99.615 |
|
|
|
|
|
|
TOTAL |
10056.418 |
5481.510 |
2252.573 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1914.288 |
972.114 |
201.515 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
1625.561 |
646.349 |
338.787 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
3956.614 |
99.000 |
99.000 |
|
(c) Deferred tax assets (net) |
0.204 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1348.104 |
3180.162 |
299.318 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
8844.771 |
4897.625 |
938.620 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
514.348 |
0.000 |
0.000 |
|
(b) Inventories |
100.346 |
35.220 |
0.000 |
|
(c) Trade receivables |
284.760 |
239.036 |
0.000 |
|
(d) Cash and cash
equivalents |
188.659 |
218.226 |
218.165 |
|
(e) Short-term loans and
advances |
121.253 |
88.120 |
1094.015 |
|
(f) Other current assets |
2.281 |
3.283 |
1.773 |
|
Total Current Assets |
1211.647 |
583.885 |
1313.953 |
|
|
|
|
|
|
TOTAL |
10056.418 |
5481.510 |
2252.573 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1720.322 |
272.643 |
5.595 |
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
|
TOTAL |
1720.322 |
272.643 |
5.595 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1444.599 |
227.107 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(39.652) |
(14.929) |
0.000 |
|
|
|
Employees benefits expense |
45.482 |
13.134 |
1.280 |
|
|
|
Other expenses |
60.530 |
15.650 |
1.546 |
|
|
|
TOTAL |
1510.959 |
240.962 |
2.826 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
209.363 |
31.681 |
2.769 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
163.561 |
22.370 |
0.030 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
45.802 |
9.311 |
2.739 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
43.543 |
8.518 |
0.428 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
2.259 |
0.793 |
2.311 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(0.729) |
0.374 |
0.771 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
2.988 |
0.419 |
1.540 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1.094 |
0.675 |
6.135 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
0.000 |
0.000 |
7.000 |
|
|
|
proposed dividend on preference shares |
0.908 |
0.000 |
0.000 |
|
|
|
Corporate Dividend Tax |
0.140 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
3.034 |
1.094 |
0.675 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
6.814 |
230.225 |
25.302 |
|
|
TOTAL IMPORTS |
6.814 |
230.225 |
25.302 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.13 |
0.03 |
0.10 |
|
KEY RATIOS
|
PARTICULARS |
|
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
PAT / Total Income |
(%) |
0.17 |
0.15 |
27.52 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.13 |
0.29 |
41.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.05 |
0.02 |
0.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.44 |
1.41 |
0.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.61 |
2.61 |
13.19 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.06.2011 |
30.06.2012 |
30.06.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
154.625 |
154.625 |
804.625 |
|
Reserves & Surplus |
11.125 |
27.453 |
5879.393 |
|
Share Application money pending
allotment |
1615.000 |
2000.000 |
0.000 |
|
Net
worth |
1780.750 |
2182.078 |
6684.018 |
|
|
|
|
|
|
long-term borrowings |
369.999 |
3071.800 |
2803.720 |
|
Short term borrowings |
0.000 |
0.000 |
108.290 |
|
Total
borrowings |
369.999 |
3071.800 |
2912.010 |
|
Debt/Equity
ratio |
0.208 |
1.408 |
0.436 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.06.2011 |
30.06.2012 |
30.06.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5.595 |
272.643 |
1720.322 |
|
|
|
4,772.976 |
530.980 |
NET PROFIT MARGIN
|
Net
Profit Margin |
30.06.2011 |
30.06.2012 |
30.06.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5.595 |
272.643 |
1720.322 |
|
Profit |
1.540 |
0.419 |
2.988 |
|
|
27.52% |
0.15% |
0.17% |
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 |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
No |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10374044 |
03/07/2013 * |
975,000,000.00 |
INDIAN OVERSEAS BANK |
Branch: Mid Corporate, B-21/14615 Bal Towers, Adjoining Dada Motors,
GT Road, Ludhiana, Punjab - 141003, INDIA |
B79257168 |
|
2 |
10312549 |
25/08/2012 * |
750,000,000.00 |
UCO BANK |
FLAGSHIP CORPORATE BRANCH, 5 PARLIAMENT STREET, NEW DELHI - 110001,
INDIA |
B57776130 |
|
3 |
10312267 |
25/08/2012 * |
750,000,000.00 |
UNITED BANK OF INDIA |
106-109,IST FLOOR,38 ANSAL TOWER, NEHRU PLACE, NEW DELHI - 110019, INDIA |
B59612945 |
|
4 |
10291181 |
25/08/2012 * |
1,000,000,000.00 |
VIJAYA BANK |
GROUND FLOOR , VIJAYA BUILDING, 17 BARAKHAMBA ROAD, NEW DELHI -
110001, INDIA |
B57525909 |
|
5 |
10280913 |
25/08/2012 * |
1,000,000,000.00 |
ALLAHABAD BANK |
INDUSTRIAL FINANCE BRANCH, IST FLOOR, 17 PARLIAMENT STREET, NEW DELHI
- 110001, INDIA |
B58094921 |
* Date of charge modification
PERFORMANCE
During the year, the
Company has earned revenue from Operations of Rs. 1720.322 millions as compared
to Rs. 272.643 millions in the previous year. Profit after tax (PAT) stood at
Rs 2.988 millions as against Rs. 0.419 millions in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
MACRO ECONOMIC
DISCUSSION AND INDUSTRY OVERVIEW
THE GLOBAL ECONOMY
The world economy
continued to remain under pressure and unpredictable during the fiscal period.
In the US, employment conditions have improved compared to the previous year
but policy uncertainty around the debt ceiling and pending government spending
cuts remain. The Euro zone has medium term structural issues that were
highlighted during the credit crisis. Although, the Middle East partly
stabilized, local political volatility and civil unrest remains in certain
parts of the region. There has also been a visible slowdown in the Emerging
Markets, a reflection of lower consumer demand from the developed economies,
domestic fiscal policy tightening, reduced investor confidence and the end of
high growth investment cycles.
After a global
slowdown in 2012, there are signs the world economy is starting to recover. The
decrease in financial leverage, several rounds of quantitative easing,
continuing low interest rates, a recovering US housing market and an improving
demand outlook bring in a feeling of optimism.
The IMF forecasts
global economic growth at 2.9% in 2013, increasing to 3.6% in 2014.GDP growth
in emerging markets and developing countries is placed at 4.5% in 2013,
increasing to 5.1% in 2014. US GDP is expected to grow 1.6% in 2013, rising
sharply to 2.6% in 2014. Europe will remain a laggard, with growth projected at
(0.4%) this year, and inching to 1.0% in 2014. China’s growth will scale back
from its recent double digit levels to 7-8%, which is healthy still.
INDIAN ECONOMY
In addition to the
effects of the global economic slowdown, India has also had to proactively
manage a series of domestic challenges, slower than required pace of reforms; a
high current account deficit and rising inflation have resulted in overall
suppressed economic growth. A global slowdown, high domestic inflation and
lackluster demand impacted corporate profitability, in-turn affecting growth.
The manufacturing sector recorded a growth of only 1.9% in 2012-13, down from
2.7% in 2011-12 (Source: pmindia.nic.in). Export growth in 2012-13 was 5.1%,
compared to 15.3% in the previous year (Source: Central Statistical Office).
A slew of reforms
introduced in the second half of 2013, a better than expected monsoon, a
pick-up in exports, and increasing foreign investments are expected to give a
boost to the economy, pulling it out of a prolonged slowdown.
The robust 8.0%
expansion (including a 12% growth in Electricity) in India’s infrastructure
output in September 2013, the strongest in a year, and the $13bn of FDI the
country received between April-August 2013 are some such indicators (Source:
Gov.in).
STEEL FABRICATION
INDUSTRY
Fabrication
applies to the building of machines, structures and other equipment, by
cutting, shaping and assembling components made from raw materials by using
various mechanical processes such as welding, soldering, forging, brazing,
forming, pressing, bending and stress removal. In this way, the Steel Fabrication
Industry proves to be an essential part of the Steel Industry value chain as it
produces minute spare parts of larger heavy machinery and equipment, which
cannot be manufactured simultaneously with the manufacturing of the heavy
machines. This is a highly fragmented and labour intensive sector with medium
and small scale industries heavily dependent on job work.
Most of the
Structural Steel Fabrications can be divided into three categories:
1)
Hot Rolled Long Products like continuously produced
standard size Beams and Bars from Steel Rolling Mills.
2)
Pre-designed and Pre-engineered Buildings for
pre-fabrication and then assembly at site. Steel pre-fabrication can be
outsourced to a fabrication shop or carried out at site.
3)
Large or Custom size Plate Fabricated Beams, Boxes,
Columns and Girders, which cannot be formed by continuous process or hot
rolling. These plate welded fabrications are extensively used by architects and
design engineers for rapid and economic construction of bridges, flyovers,
multi-storied buildings, stadiums, airports, metro rail projects.
Structural steel
fabrication can be carried out in shop or at the construction site. Fabrication
of steelwork carried out in shops is precise and of assured quality, whereas
field fabrication is comparatively inferior in quality.
In India,
construction site fabrication is most common even in large projects due to
inexpensive field labour, high cost of transportation, difficulty in the
transportation of large members, higher excise duty on products from shop.
Beneficial taxation for site work is a major financial incentive for site
fabrication.
Since the demand
for steel fabrication sector comes from the infrastructure sector, the growth
of fabrication industry largely depends on the overall industrial scenario
including the demand for power, roads/bridges and transport.
THE INFRASTRUCTURE
SECTOR: CURRENT STATUS
India is a
fast-growing economy, characterised by a growing middle-class. By 2030, about
40% of the country’s population (close to 600 million people) will be living in
cities. The Government has duly identified the need to give a major boost to
its infrastructure and has planned to increase spending in the 12thfive-year
plan.
THE POWER SECTOR:
CURRENT STATUS
Greater scale of
electrification, increasing household incomes and a fast growing economy with a
GDP growth rate of 5-8% have been pushing the demand for electricity in the
upward direction. Per capita electricity consumption has increased at a CAGR of
6% over the last five years and has reached 880 kWh in 2011-12 from 672 kWh in
2006- 07. Considering that this consumption is much lower than the global
average consumption of 2,800 kWh, it is expected that India will continue to
see a growth in demand as more electricity provides tremendous room to improve
quality of life.
More demand for
power will lead to greater investments in power plants and ancillary
industries, and therefore, a greater demand for fabricated structures.
OUTLOOK
Economic growth
has been subdued in the Financial Year 2012-13, against the backdrop of a
global slowdown, high inflation and a surging current-account deficit that has
affected their economy.
However, the
optimism about the long term potential of India is still intact. Decisive
policy actions and reforms like attracting FDI, curtailing the current-account
deficit and increasing infrastructure spending are expected to boost business
confidence and lead to stronger growth.
Going by the 12th five-year
plan, infrastructure spending is targeted to be up to 10% of the GDP, vs. 7.5%
in the 11th Plan. Apart from the significant enhancement in the proportion of
the total spend (vs. the GDP), the power sector, also expected to experience a
slightly higher proportion of the infrastructure spend (34% vs. 33% in the 11th
5-year plan). Thus, it continues to attract approximately one-third of the
total projected investment in infrastructure.
CONTINGENT
LIABILITIES:
|
SECURED LOANS |
30.06.2013 (Rs.
In Millions) |
30.06.2012 (Rs.
In Millions) |
|
*Estimated amount of contracts remaining to be executed on capital account and not provided for |
0.000 |
455.077 |
|
Bank Guarantees |
221.773 |
6.342 |
|
* Contingent Assets are neither recognised nor disclosed |
||
FIXED ASSETS
œ Land
œ Building
œ Plant and Equipment
œ Furniture and Fixtures
œ Vehicles
œ Office Equipments
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON
31ST
MARCH 2014
(Rs. in millions)
|
|
|
Particulars |
Quarter Ended |
Year
Ended |
|
|
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
a) Net Sales/Income from Operations (net of excise duty) |
1324.070 |
1328.171 |
3796.341 |
|
|
|
b) Other Income |
19.134 |
3.928 |
24.047 |
|
|
|
Total Income from Operations (Net) |
1343.204 |
1332.099 |
3820.388 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials consumed |
947.431 |
1265.808 |
3260.259 |
|
|
b) |
Purchase of stock in-trade |
-- |
-- |
-- |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
136.516 |
(152.183) |
(30.584) |
|
|
d) |
Employee benefit expenses |
19.764 |
24.078 |
11.949 |
|
|
e) |
Depreciation and amortization expense |
77.311 |
81.746 |
177.989 |
|
|
f) |
Other expenses |
32.140 |
40.804 |
98.872 |
|
|
Total Expenses |
1213.162 |
1260.253 |
3576.700 |
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
130.042 |
71.846 |
243.688 |
|
4 |
Other Income |
-- |
-- |
-- |
|
|
5 |
|
Profit /(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
130.042 |
71.846 |
243.688 |
|
6 |
Finance Costs |
102.846 |
67.024 |
210.793 |
|
|
7 |
|
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
27.196 |
4.822 |
32.895 |
|
8 |
Exceptional Items |
-- |
-- |
-- |
|
|
9 |
Profit /(Loss) from ordinary activities before tax |
27.196 |
4.822 |
32.895 |
|
|
10 |
Tax Expense |
10.383 |
1.066 |
11.734 |
|
|
11 |
Net Profit /(Loss) from ordinary activities after tax
(9-10) |
16.813 |
3.756 |
21.161 |
|
|
12 |
Extraordinary items (net
of tax expense) |
-- |
-- |
-- |
|
|
13 |
Net Profit /(Loss) for the period (11-12) |
16.813 |
3.756 |
21.161 |
|
|
14 |
Paid up equity share
capital (Eq. shares of Rs.10/- each) |
16.813 |
3.756 |
21.161 |
|
|
15 |
Reserve excluding
revaluation reserves |
|
|
|
|
|
16 |
|
Earnings per share Basic and diluted after Extra- ordinary Items |
1.45 |
0.26 |
1.82 |
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
|
Public Shareholding |
|
|
|
|
|
|
- No. of Shares |
3326635 |
6284356 |
3326635 |
|
|
|
- Percentage of
Shareholding |
28.65 |
43.13 |
28.65 |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
|
- Number of shares |
-- |
-- |
-- |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
-- |
-- |
-- |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
|
|
b) Non- encumbered |
|
|
|
|
|
|
- Number of shares |
8285865 |
8285865 |
8285865 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
71.35% |
56.87% |
71.35% |
|
|
Particulars |
Quarter
ended 31.03.2014 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning
of the quarter |
Nil |
|
|
|
Received during the
quarter |
Nil |
|
|
|
Disposed during the
quarter |
Nil |
|
|
|
Remaining unresolved at
the end of the quarter |
Nil |
NOTE:
1. The above results duly reviewed by the Audit Committee have been approved by the Board of Directors at its meeting held on 15th May, 2014
2. The Limited Review Report as required under Clause 41 of the Listing Agreement has been completed by the Auditors of the Company and related report is being submitted to the concerned Stock Exchanges.
3. Segment reporting as defined in Accounting Standard (AS)-17 is not applicable
4. Previous year's figures have been regropued and reclassified, to the extent necessary, to conform to the current year's figures.
5. During the quarter, the Company has bought back 27,67,646 Equity shares of Rs. 10 each, which represents 23.83% of the paid up Equity Share Capital of the company.
6. During the quarter, the Company has extinguished 29,57,721 Equity Shares of Rs. 10 each. As on 31st March, 2014, the Company has extinguished total number of 38,50,000 Equity shares.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.56 |
|
|
1 |
Rs.103.50 |
|
Euro |
1 |
Rs.82.41 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
42 |
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.