MIRA
INFORM REPORT
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Report Date : |
30.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
USHA MARTIN
LIMITED (w.e.f. 22.07.2003) |
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Formerly Known
As : |
USHA BELTRON
LIMITED |
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Registered
Office : |
2 A, Shakespeare Sarani,
P.S. Shakespeare Sarani, Mangal Kalash, Kolkata – 700071, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
22.05.1986 |
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Com. Reg. No.: |
21-091621 |
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Capital Investment
/ Paid-up Capital : |
Rs.305.400 Millions |
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CIN No.: [Company Identification
No.] |
L31400WB1986PLC091621
(New) L99999WB1986PTC091621
(Old) |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALU01301G |
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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
: |
Subject is engaged in the
manufacturing of speciality steel and value added steel products. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (47) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record. The company has incurred a loss from its operations during 2014. However, the ratings takes into consideration the long experience and satisfactory track record of the promoters of Usha Martin Limited (UML), leadership position in the domestic steel wire ropes industry, strong presence in the export in the export market. 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) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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
NEWS
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
13.11.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
LOCATIONS
|
Registered
Office / Corporate Office : |
2 A, Shakespeare
Sarani, P.S. Shakespeare Sarani, Mangal Kalash, Kolkata – 700 071, West
Bengal, India |
|
Tel. No.: |
91-33-22828540/
41/ 6737/ 8545/ 39800300/ 22825816 |
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Fax No.: |
91-33-22821660/
1971/ 39800400 / 22829029 / 39800500 |
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E-Mail : |
r.jhawar@ubest.sprintrpg.ems.net.in |
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Website : |
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Factory 1 : |
Adityapur, Jamshedpur – 831
001, Jharkhand - India |
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Factory 2 : |
Tatilswai, Ranchi – 835 103, Jharkhand,
India |
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Factory 3 : |
Hoshiarpur – 146 024, Punjab, India |
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Factory 4 : |
Nawalganj, Agra – 282 006, Uttar Pradesh, India |
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Factory 5 : |
Sri Perumbudur,
Tamilnadu, India |
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Factory 6 : |
Silvassa, (U M Cables) |
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Factory 7 : |
Chennai, India |
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Overseas Office:
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·
Navanakoran Industrial Estate, Thailand (Usha
Siam Steel Industries) ·
Jebel Ali Free Zone, Dubai, UAE (Brunton Wolf
Wire Ropes) ·
Worksop, Nottinghamshire, UK (Usha Martin UK) |
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Distribution and
Marketing : |
·
United States ·
Europe ·
Middle East ·
South East Asia ·
Chaina ·
Australia |
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R and D Centre : |
Italy |
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Mines : |
· Barajamda, Jharkhand, India · Daltonganj, Jharkhand, India |
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Regional Office : |
·
New Delhi · Chennai ·
Kolkata ·
Santa Cruz |
DIRECTORS
AS ON: 31.03.2014
|
Name |
Mr. B.K. Jhawar |
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Designation |
Chairman Emeritus |
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Name : |
Mr. Prashant Jhawar |
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Designation : |
Chairman |
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Name : |
Mr. Brij K Jhawar |
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Designation : |
Director |
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Name : |
Mrs. Ramni Nirula |
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Designation : |
Director |
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Name : |
Mr. S Singhal |
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Designation : |
Director |
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Name : |
Mr. G N Bajpai |
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Designation : |
Director |
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Name : |
Mr. Nripendra Misra |
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Designation : |
Director (upto 26th May, 2014) |
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Name |
Mr. Jitender Balakrishnan |
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Designation |
Director |
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Name : |
Mr. R S Thakur |
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Designation : |
Director |
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Name |
Mr. Rajeev Jhawar |
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Designation |
Managing Director |
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Qualification : |
B. Com (Hons) |
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Date of Appointment : |
01.10.1997 |
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Name |
Dr. Vijay Sharma |
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Designation |
Joint Managing Director [Steel Business] (upto 25th May, 2014) |
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Name : |
Mr. Pravin Kumar Jain |
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Designation : |
Executive Director and Chief Executive [Wire and Wire Ropes Business] |
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Qualification : |
B. Tech, MBA |
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Date of Appointment : |
01.09.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Sujo Roy |
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Designation : |
Finance Manager |
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Name : |
Mr. A.K. Somani |
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Designation : |
Chief Financial Officer and Company Secretary |
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Qualification : |
B. |
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Date of Appointment : |
03.04.1990 |
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Name : |
Mr. Debasish Mazumder |
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Designation : |
Associate President [Steel] |
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Name : |
Mr. Sanjay Nath |
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Designation : |
Senior Vice President [Sales and Marketing] |
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Name : |
Mr. D.J. Basu |
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Designation : |
Senior Vice President [HR] |
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Name : |
Mr. S.K. Jala |
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Designation : |
Senior Vice President [IT] |
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Name : |
Mr. Anjan Kumar Dey |
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Designation : |
Senior Vice President [Iron Making] |
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Name : |
Mr. Malay Kumar De |
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Designation : |
Senior Vice President [Metallurgical Services] |
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Name : |
Mr. Arvind Kapoor |
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Designation : |
Vice President [Marketing] |
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Name : |
Mr. Pavan Trivedi |
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Designation : |
President [Commercial and Accounts] |
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Name : |
Mr. Ashutosh Dixit |
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Designation : |
Associate President [Wire and Wire Rope Business] |
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EUROPE |
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Name : |
Mr. S. Jodhawat |
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Designation : |
Chief Executive Officer – Usha Martin International Limited |
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Name : |
Mr. Paul Scutt |
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Designation : |
Managing Director – European Marine and Management |
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Name : |
Mr. Len Allen |
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Designation : |
Director Operation – Brunton Shaw |
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Name : |
Mr. Henk Steenbergen |
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Designation : |
General Manager – De Ruiter Staalkabel B.V |
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Name : |
Mr. Franco Clerici |
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Designation : |
Director - Group
R and D and Technical Services-Usha Martin Italia SRL |
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SOUTH EAST ASIA |
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Name : |
Mr. Amogh Sharma |
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Designation : |
Managing Director – Usha Siam Steel Industries Public Company Limited |
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Name : |
Mr. Tapas Ganguly |
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Designation : |
Chief Executive Officer – Usha Martin Singapore Pte Limited |
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MIDDLE EAST |
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Name : |
Mr. S. Mazumder |
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Designation : |
Sr. DGM, Sales and Marketing – Brunton Wold Wire Ropes, Fzco. |
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UNITED STATES OF
AMERICA |
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Name : |
Mr. Jeffrey Schipani |
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Designation : |
President – Usha Martin Americas Inc. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 30.06.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a %
of Total No. of Shares |
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(A)
Shareholding of Promoter and Promoter Group |
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|
6042267 |
2.33 |
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|
86611935 |
33.45 |
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|
92654202 |
35.79 |
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|
2422983 |
0.94 |
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|
33336135 |
12.88 |
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|
35759118 |
13.81 |
|
Total
shareholding of Promoter and Promoter Group (A) |
128413320 |
49.60 |
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(B)
Public Shareholding |
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|
48735400 |
18.82 |
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|
87989 |
0.03 |
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|
11468284 |
4.43 |
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|
13147097 |
5.08 |
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|
73438770 |
28.37 |
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|
15572464 |
6.01 |
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|
23619422 |
9.12 |
|
|
17860629 |
6.90 |
|
|
57052515 |
22.04 |
|
Total
Public shareholding (B) |
130491285 |
50.40 |
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Total
(A)+(B) |
258904605 |
100.00 |
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(C) Shares
held by Custodians and against which Depository Receipts have been issued |
|
|
|
|
23743580 |
0.00 |
|
|
22093595 |
0.00 |
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|
45837175 |
0.00 |
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|
Total
(A)+(B)+(C) |
304741780 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 Million
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the
manufacturing of speciality steel and value added steel products. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Not Divulged |
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Bankers : |
· State Bank of India · Axis Bank Limited · ICICI Bank Limited · HDFC Bank Limited · IndusInd Bank Limited ·
Bank of Baroda |
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Facilities : |
NOTE : LONG-TERM
BORROWINGS Nature of
Security and terms of repayment for secured borrowings : Nature of
Security All Term Loans
from Financial Institution and Banks are secured by way of Joint Equitable Mortgage
by deposit of title deeds of certain immovable properties and hypothecation
over movable assets of the Company both present and future subject to prior
charges of the Company’s Bankers on specified movable assets for Working
Capital requirements. Terms of
Repayment (a) Rupee term
loan from a Financial Institution amounting to Rs.19,00.000
Millions (31st March, 2013 : Rs.22,00.000 Millions) is repayable in ten
quarterly installments commencing from 20th June, 2015 to 20th
September, 2017. Interest is payable on monthly basis at One Year Gsec plus
2.85% p.a. (b) Rupee term
loan from a Financial Institution amounting to Rs.19,00.000 Millions (31st
March, 2013 : Rs. 20,000) is repayable in fourteen quarterly installments
commencing from 20th June, 2015 to 20th September, 2018. Interest
is payable on monthly basis at One Year Gsec plus 3.25% p.a. (c) Rupee term
loan from a Bank amounting to Rs. 4,80.000 Millions (31st March, 2013 : Rs.
6,40.000 Millions) is repayable in eleven quarterly installments from 29th
April, 2015 to 29th October, 2017. Interest is payable on monthly basis at
Base rate of the Bank plus 1.75% p.a. d) Rupee term
loan from a Bank amounting to Rs. 14,00.000 Millions (31st March,
2013 : Rs. 18,00.000 Millions) is repayable in six quarterly installments
commencing from 30th June, 2015 to 30th September, 2016. Interest is payable
on monthly basis at Base rate of the Bank plus 1.15% p.a. (e) Rupee term
loan from a Bank amounting to Rs. 25,00.000 Millions (31st March,
2013 : Rs. 25,000) is repayable in twenty eight quarterly installments
commencing from 30th June, 2015 to 31st March, 2022. Interest is payable on
monthly basis at Base rate of the Bank plus 1.80% p.a. (f) Rupee term
loan from a Bank amounting to Rs. 2500.000 Millions (31st March,
2013 : Rs. 25,00.000 Millions) is repayable in twenty eight quarterly
installments commencing from 29th June, 2015 to 29th March, 2022. Interest is
payable on monthly basis at Base rate of the Bank plus 1.75% p.a. (g) Rupee term
loan from a Bank amounting to Rs. 800.000 Millions (31st March, 2013 : Rs.
10,00.000 Millions) is repayable in nine quarterly installments commencing
from 12th May, 2015 to 12th May, 2017. Interest is payable on monthly basis
at Base rate of the Bank plus 1.00% p.a. (h) Rupee term
loan from a Bank amounting to Rs. 3500.000 Millions (31st March,
2013 : Rs. Nil) is repayable in thirtyone quarterly installments commencing
from 30th June, 2016 to 31st December, 2023. Interest is payable on monthly
basis at Base rate of the Bank plus 2.50% p.a. (i) Rupee term
loan from a Bank amounting to Rs. 15,00.000 (31st March, 2013 : Rs. Nil) is
repayable in twentyeight quarterly installments commencing from 31st March,
2016 to 31st December, 2022. Interest is payable on monthly basis at Base
rate of the Bank plus 1.75% p.a. (j) Rupee term
loan from a Bank amounting to Rs. 1500.000 Millions (31st March, 2013 : Rs.
Nil) is repayable in twentyeight quarterly installments commencing from 31st
December, 2015 to 30th September, 2022. Interest is payable on monthly basis
at Base rate of the Bank plus 2.00% p.a. (k) Foreign
Currency term loan from a Bank amounting to Rs. 7489.400 Millions (31st March,
2013 : Rs.6785.600 Millions) is repayable in ten equal quarterly installments
commencing from 30th October, 2015 to 31st January, 2018. Interest is payable
on quarterly basis at three months USD LIBOR plus 2.85% p.a. SHORT-TERM
BORROWINGS @ Nature of
Security - Working Capital Loans from Banks are secured by hypothecation of
all current assets of the Company. Further such loans from Banks are also
secured by charge on certain immovable properties, subject to prior charges
in favour of Financial Institutions and Banks created/to be created in
respect of any existing/future financial assistance/accommodation which has
been/may be obtained by the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Price Waterhouse Chartered
Accountants |
|
Address : |
Plot No. Y-14,
Block EP, Sector V, Kolkata – 700
091, West |
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Subsidiary: |
·
Usha Martin International Limited (UMIL) ·
Usha Martin Americas Inc. (UMAI) ·
Usha Martin UK Limited (UMUK) ·
Usha Martin Vietnam Co. Limited (UMVCL) ·
Usha Martin Australia Pty Limited (UMAUS) ·
European Management and Marine Corporation
Limited (EMMC) ·
EMM Caspian Limited (EMM Caspian) ·
Usha Siam Steel Industries Public Company Limited
(USSIL) ·
Brunton Shaw UK Limited (BSUK) ·
Usha Martin Singapore Pte. Limited (UMSPL) ·
Brunton Wolf Wire Ropes FZCO. (BWWR) ·
P. T. Usha Martin Indonesia (PTUMI) ·
De Ruiter Staalkabel B.V. (De Ruiter) ·
Usha Martin Europe B.V. (UMEBV) ·
Usha Martin Italia S.R.L (UMISRL) ·
UM Cables Limited (UMCL) ·
Usha Martin Power and Resources Limited (UMPRL) ·
Bharat Minex Private Limited (BMPL) ·
Usha Martin China Company Limited (UMCCL) [with
effect from 25th April, 2013] - |
|
|
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|
Joint Venture
Company: |
·
Gustav Wolf Speciality Cords Limited (GWSCL)
Joint Venture Company ·
Pengg Usha Martin Wires Private Limited (PUMWPL) ·
CCL Usha Martin Stressing Systems Limited
(CCLUMSSL) ·
Dove Airlines Private Limited (DAPL) |
|
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|
Substantial
Interest in voting power of the entity: |
·
UMI Special Steel Limited (UMISSL ) - (under
liquidation) |
|
|
|
|
Enterprise over which Key Managerial Personnel
are able to exercise significant influence : |
·
Ambe International Pte. Limited (AIPL) [with
effect from 11th May, 2013] |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Re.1/- each |
Rs.500.000 Millions |
|
10000000 |
Redeemable Cumulative Preferences Shares |
Rs.50/- each |
Rs.500.000 Millions |
|
|
|
|
|
|
|
Total
|
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
304741780 |
Equity Shares |
Re.1/- each |
Rs.304.700
Millions |
|
|
Add: Shares Forfeited |
|
Rs.0.700
Million |
|
|
|
|
|
|
|
Total |
|
Rs.305.400 Millions |
Note:
4,40,93,175 (31st
March, 2013 : 2,42,74,715) Equity Shares are represented by Global Depository
Receipts (GDRs) out of above paid up Equity Shares.
Rights, preference
and restrictions attached to shares issued:
The Company has only one class of equity shares having a par value of
Re.1/- per share. Each shareholder is eligible for one vote per share held
(except in case of GDRs). The dividend if proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their
shareholding.
(c) Details of
shares held by shareholders holding more than 5 % of the aggregate shares in
the Company.
|
PARTICULAR |
As
at 31st March, 2014 |
|
|
|
|
|
|
UMIL Shares and Stock Broking Services Limited |
38,888,369 |
(12.76%) |
|
Usha Martin Ventures Limited |
20,477,588 |
(6.72%) |
|
Peterhouse Investments Limited |
18971455 |
[6.23%] |
|
Peterhouse Investments India Limited (PIIL) |
20767330 |
[6.81%] |
|
Deutsche Bank Trust Company Americas |
24274715 |
[7.97%] |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
305.400 |
305.400 |
305.400 |
|
(b) Reserves & Surplus |
14921.700 |
15143.800 |
15003.300 |
|
(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) |
15227.100 |
15449.200 |
15308.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
25469.400 |
22957.000 |
19710.900 |
|
(b) Deferred tax liabilities (Net) |
1968.000 |
2079.800 |
2038.400 |
|
(c) Other long term liabilities |
2480.300 |
5010.800 |
4114.200 |
|
(d) long-term provisions |
309.800 |
285.300 |
180.500 |
|
Total Non-current Liabilities (3) |
30227.500 |
30332.900 |
26044.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
6689.900 |
3576.500 |
2030.200 |
|
(b) Trade payables |
15031.500 |
14365.300 |
13685.100 |
|
(c) Other current
liabilities |
9392.800 |
6922.100 |
3814.100 |
|
(d) Short-term provisions |
129.100 |
149.500 |
54.800 |
|
Total Current Liabilities (4) |
31243.300 |
25013.400 |
19584.200 |
|
|
|
|
|
|
TOTAL |
76697.900 |
70795.500 |
60936.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
51028.900 |
32852.700 |
29065.700 |
|
(ii) Intangible Assets |
21.700 |
19.500 |
23.200 |
|
(iii) Capital
work-in-progress |
1518.900 |
11736.100 |
7624.900 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1737.800 |
1747.800 |
1869.500 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2746.100 |
2552.500 |
2085.600 |
|
(e) Other Non-current assets |
0.000 |
63.600 |
202.100 |
|
Total Non-Current Assets |
57053.400 |
48972.200 |
40871.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
10.000 |
80.000 |
0.000 |
|
(b) Inventories |
11639.700 |
13056.500 |
12127.400 |
|
(c) Trade receivables |
3614.300 |
4907.200 |
3597.100 |
|
(d) Cash and cash
equivalents |
1549.500 |
1231.100 |
2531.800 |
|
(e) Short-term loans and
advances |
2354.800 |
2065.000 |
1333.500 |
|
(f) Other current assets |
476.200 |
483.500 |
476.100 |
|
Total Current Assets |
19644.500 |
21823.300 |
20065.900 |
|
|
|
|
|
|
TOTAL |
76697.900 |
70795.500 |
60936.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
32871.200 |
30445.300 |
28368.900 |
|
|
|
Other Income |
778.300 |
432.200 |
426.400 |
|
|
|
TOTAL (A) |
33649.500 |
30877.500 |
28795.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10677.300 |
11286.800 |
13140.000 |
|
|
|
Purchases of Stock-in-trade |
178.800 |
35.100 |
35.400 |
|
|
|
Employees Benefits Expense |
2057.100 |
1767.800 |
1520.900 |
|
|
|
Other Expenses |
14721.600 |
13108.700 |
12403.000 |
|
|
|
Adjustment of Items Capitalised and Departmental Orders for own
consumption |
(40.000) |
(171.200) |
(35.000) |
|
|
|
Changes in inventories
of Finished Goods, Work-in-progress, Stock-in-trade and Scrap |
(873.500) |
(873.000) |
(2357.000) |
|
|
|
TOTAL (B) |
26721.300 |
25154.200 |
24707.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6928.200 |
5723.300 |
4088.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4261.700 |
3267.700 |
2548.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2666.500 |
2455.600 |
1539.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3035.100 |
2352.400 |
1977.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(368.600) |
103.200 |
(438.100) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(111.800) |
32.700 |
(110.400) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(256.800) |
70.500 |
(327.700) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
223.700 |
226.700 |
554.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
20.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares and tax
thereon |
0.000 |
53.500 |
0.000 |
|
|
|
Transfer to Capital Redemption Reserve |
0.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(33.100) |
223.700 |
226.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods (On FOB basis) |
8011.800 |
4967.200 |
4681.400 |
|
|
|
Interest Received |
6.700 |
6.200 |
5.700 |
|
|
|
Service Charges |
0.100 |
0.700 |
0.400 |
|
|
|
Dividend |
29.300 |
29.800 |
19.900 |
|
|
|
Commission received on corporate guarantees |
14.500 |
0.000 |
0.000 |
|
|
|
Reimbursement of expenses related to the depositary receipt |
4.900 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
8067.300 |
5003.900 |
4707.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
6063.300 |
5482.800 |
5363.300 |
|
|
|
Components and Spare Parts |
675.400 |
315.400 |
360.400 |
|
|
|
Capital Goods |
375.000 |
1606.200 |
419.300 |
|
|
TOTAL IMPORTS |
7113.700 |
7404.400 |
6143.000 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(0.84) |
0.23 |
(1.08) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(0.76) |
0.23
|
(1.14) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.12) |
0.34
|
(1.54) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.50) |
0.18
|
(0.85) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02) |
0.01
|
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.11 |
1.72
|
1.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.63 |
0.87
|
1.02 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
305.400 |
305.400 |
305.400 |
|
Reserves & Surplus |
15,003.300 |
15,143.800 |
14,921.700 |
|
Net
worth |
15,308.700 |
15,449.200 |
15,227.100 |
|
|
|
|
|
|
long-term borrowings |
19,710.900 |
22,957.000 |
25,469.400 |
|
Short term borrowings |
2,030.200 |
3,576.500 |
6,689.900 |
|
Total
borrowings |
21,741.100 |
26,533.500 |
32,159.300 |
|
Debt/Equity
ratio |
1.420 |
1.717 |
2.112 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
28368.900 |
30445.300 |
32871.200 |
|
|
|
7.319 |
7.968 |
NET PROFIT MARGIN
|
Net Profit
Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
28368.900 |
30445.300 |
32871.200 |
|
Profit/(Loss) After Tax |
(327.700) |
70.500 |
(256.800) |
|
|
(1.16%) |
0.23% |
(0.78%) |
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 |
Yes |
REVIEW OF
OPERATIONS
The turnover for
the year increased to and Rs. 32871.200 Millions on standalone basis Rs.
36218.300 Millions and Rs. 30445.300 Millions respectively in the previous
year.
The Company’s
operating profit increased to Rs. 6928.200 Millions on standalone basis from
Rs. 7052.000 Millions and Rs. 5723.300 Millions respectively. On standalone
basis, the Company reported loss of Rs 256.800 Millions against profit of
Rs.70.500 Millions in the previous year.
PROJECTS
The cost
optimisation projects put to commercial use during the financial year 2013-14
include Coke Oven Plant, Ore Beneficiation and Pellet Plant, DRI IV, 35 MW
Captive Power Plant.
BUSINESS OUTLOOK
Whilst the global
economy has in general made a modest recovery, growth in the Indian economy has
declined and in certain key sectors remained in negative during the current
financial year. The lower or negative growth and depressed productivity
indices, when combined with the Company’s investment in strengthening the
vertical integration and transition has been taking its toll on the Company’s
performance. However, after a prolonged period of economic gloom and concerns,
the macro economic trends appear to be reversing as of the last quarter of
FY’14. As this shift combines with a reduction of political uncertainty, we can
expect a resulting improvement in the business conditions both for Usha Martin
and wider Indian economy.
These shifts in
the economic circumstances, when combined with Company’s long term advantage of
increasingly high levels of vertical integration from mineral resources to
value added products - puts the Company in a good medium term position to yield
increasingly better results.
In order to
significantly strengthen it cost base and yield the results from its capital
assets, the Company is continuing to invest, as part of its long-term
optimasation plan, in balancing equiptments, plant infrastructure / facilities
and strengthening the management team and process.
SUBSIDIARIES
The international
subsidiaries provide significant synergy and support to the Company’s wire rope
business and performance. Further, all the operating subsidiaries of the
Company have continued to perform reasonably well in the economic and business
circumstances prevailed during the year under review. The Statement under
Section 212 of the Companies Act, 1956 in respect of subsidiaries of the
Company is given separately
JOINT VENTURES
All the key joint
ventures formed by the Company namely, Pengg Usha Martin Wires Private Limited,
Gustav Wolf Specialty Cords Limited and Dove Airlines Private Limited, have
reported satisfactory results in the year.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
The
global economic conditions continued to remain suboptimal even during financial
year 2013-14. The global economic growth in calendar year 2013 slipped further
down to 3.0% from 3.2% in 2012 and 4.0% in 2011. While the advanced economies
achieved a lower growth of 1.3% in 2013 compared to 1.4% in 2012 and 1.7% in
2011, the emerging and developing economies also slowed down to 4.7% during
2013 from 5.1% in 2012 & 6.3% in 2011. The Euro Area economy continuing to
remain sluggish with negative growth of 0.5% against estimated negative of 0.3%
and actual negative 0.7% in 2012 but positive 1.6% in 2011, suggests that the
factors which caused economic conditions to remain subdued not only prevail but
are likely to remain challenging for achieving estimated growth of 1.2% in
2014. The World Economic Outlook (World Bank) has forecasted growth Advanced
Economies and Emerging/ Developing Economies at 3.6%, 2.2% and 4.9%
respectively in 2014 and expects average global growth improving to 3.9% and
that of Emerging and Developing countries to about 5.3% in 2015.
The Indian economy
registered a GDP growth of 4.9% in FY’14 against 4.5% in FY’13. Even this
marginal improvement was on account of Agriculture growth of 4.6% in FY’14
against 1.4% in FY’13. In fact, the growth in non-agriculture sectors came down
in FY’14. The Industry and Infrastructure growth declined further from already
a very low level of 1.0% in FY ’13 to 0.7% in FY’14. Whereas manufacturing
contracted by (-) 0.2% in FY’14 against 1.1% in FY’13 and Mining continued at
negative 1.9% in FY’ 14 against negative 2.2% in FY’ 13
The Index of
Industrial Production (IIP), which was significantly low at 1.1% in FY’13
against 2.9% in FY’12, slipped to negative 0.1% in FY‘14. The Manufacturing
sector turned negative 0.8% against very low levels of 1.3% in FY’13 and 3.0%
in FY’12. The Mining sector continues to remain at negative 0.8% in FY’14 over
the negative of 2.3% in FY’13 and 2.0% in FY’12.
On use basis,
while Capital Goods segment continued to remain negative even in 3rd successive
year at 3.7% in FY’14 against 6.0% in FY’13 and 4.0% in FY’12, the Basic Goods
segment kept slipping down to 2.0% in FY’14 from 2.4% in FY’13 and 5.5% in
FY’12. On the positive side, however, after a prolonged period of concerns on
fiscal deficit, inflation and trade gap fronts, the trends seem to have
reversed in the last quarter of FY’14. Further, the political uncertainties
appearing to be over now with a more stable and decisive government at the
Centre,
process of
economic recovery is expected to begin and hopefully accelerated resulting into
long awaited better business conditions and growth.
COMPANY OVERVIEW
BUSINESS
CONFIGURATION
Usha Martin is an
integrated specialty steel and value added steel products Company, having
business locations acrossn various parts of the world including through its
subsidiaries and/or joint ventures.
The Company has
state-of-art integrated steel plant near Jamshedpur (Jharkhand) producing a
wide range of specialty steel wire rods and bars, with captive iron ore and
coal mines in Jharkhand. The other/auxiliary products include iron ore pellet,
coke, DRI, hot metal, pig iron, sinter, oxygen and power generation, primarily
for captive consumption.
With completion of
some major cost optimization projects like pellet, coke and additional DRI and
power generation during FY’14, the Company has further integrated its steel
business and increased its competitiveness through cost reduction. The Company
is one of the largest producers of specialty steel in India, catering to
requirements of automotive, railways, general engineering and construction
sectors.
The steel products
manufactured at Jamshedpur facility were sold in the market to the extent of
66% and balance 34% was for in-house production of value added products such as
wire ropes, wires, strands and bright bars at Ranchi, Hoshiarpur, Chennai and
Bangkok.
In steel wire rope
manufacturing, the Company is the largest in India and one of the largest in
the world. Its manufacturing plants are located at Ranchi and Hoshiarpur in
India, and in Thailand, Dubai and the UK overseas. The wide range of wire ropes
produced by the Company has applications in offshore oil exploration, mining,
elevators, cranes, bridges, infrastructure, construction, fishing and variety
of general purposes.
Besides wire
ropes, other value added products include cords, strands, wires, bright bars
and oil tempered wires. The Company has also a plant at Chennai to manufacture
bright bars.
The global
business of wire rope is supported by marketing, distribution and rigging
facilities at various locations in the USA, Europe and South-East Asia. The
Company provides products and solutions for oil and gas sectors for anchoring,
drilling and mooring applications from its facilities at Aberdeen in UK.
Further, the Company has an R&D Centre in Italy.
The Company has an
in-house machinery manufacturing facility at Ranchi for captive engineering
requirements as well as to cater to external demand in India and export
markets.
Through one of its
wholly owned subsidiary in India, the Company also manufactures a wide range of
telecommunication cables meant for variety of applications and caters to
requirements of domestic and export markets.
The strategy of
integration places the Company distinctly in a unique position by combining
both ends of value chain, from mining to high value wire ropes and further
providing end use solutions on its key product applications. In addition to
providing benefits of quality, consistency and self sufficiency for principal
raw materials, it provides captive markets for a sizeable portion of the
finished products, thereby de-risking both the businesses. Also it enables the
Company to aspire to become truly competitive across the entire value chain of
chosen products.
STEEL BUSINESS
Business
Environment
The Index of
Industrial Production for steel recorded marginal improvement to 4.3% in FY’14
compared to 4.1% in FY’13, which was significantly lower than 10.3% and 13.2%
in FY’12 and FY’11 respectively. The deep decline in Motor Vehicles from
already negative 5.3% in FY’13 to negative 9.6% in FY’14 was significant and in
line with drop in Manufacturing sector to (-) 0.8% from 1.3%. Similarly in
mining sector contraction continues at (-) 0.8% in FY’14 against (-) 2.3% in
FY’13.
These overall
economic conditions explain the adverse business environment, which the Company
had to face during the financial year 2013-14.
The domestic
consumption of steel further subdued with growth of mere 0.6% in FY’14 against
3.3% in FY’13, but consumption of Alloy Steel has shrunk drastically lower by
22.1% to 4.6 MnT in FY’14 from 5.9 MnT in FY’13. Within automobile, which
accounts for major portion of consumption of alloy steel, the requirement of
alloy steel bars and rods for M&HCV and LCV is estimated to have recorded a
significant drop by 20.4% and 13.7% respectively over FY’13, though the
increase in requirement in tractor sector by 22.4% in the current financial
year has brought down severity of demand slump in four-wheel auto segment to
2.8%.
These
circumstances had an adverse impact on selling prices of steel rolled products
of the Company. In addition the Company had an additional production of steel.
But in view of depressed end use market conditions it had to increase sale of
billets in domestic and export markets, which normally fetch lower realization.
The combined result was evident from overall average sales realization coming
down by 4.5% in FY’14.
KEY
ACHIEVEMENTS
The
Company had following achievements during the current financial year:
• Achieved
highest ever Billet production,
• Achieved
highest ever volume production of Coal and DRI, enabling shift to lower cost
metalics,
• Successfully
commissioned key cost optimization projects, namely coke oven plant, ore
beneficiation and pellet plant, DRI IV, 35 MW Captive power plant, etc.
OPERATIONAL HIGHLIGHTS
The Steel business
achieved a higher sales turnover of Rs.25283.600 Millions in the current
financial year against Rs.23976.300 Millions in the previous year, up by 5.5%.
The operating profit and margins improved to Rs.5045.900 Millions at 20.0% during
the year against Rs.3922.300 Millions at 16.4% in the previous year.
Share of Steel
business stood at 62.2% of the Company’s gross level of activity and 53.3% of
reported net turnover in the current financial year. During FY’14 the export
turnover of Steel business increased to Rs. 2977.900 Millions, which is 11.8%
of its’ turnover, against Rs. 766.800 Millions in the previous year.
PROJECTS
The following
major cost optimization projects undertaken by the Company have been
commissioned during the year:
- Coke Oven,
- 35 MW Waste Heat
based Captive Power Plant,
- DRI IV,
- Iron Ore
Beneficiation Plant, and
- Pellet Plant
The benefits from
these cost saving projects would further deepen value integration and
strengthen its’ cost competitiveness during the later part of financial year
2014-15 and beyond. Such plants and processes normally take a period to
stabilize.
GENERAL INFORMATION
Subject is a public limited company domiciled in India, incorporated under the provisions of the Companies Act, 1956 and is listed on two stock exchanges in India and its GDRs are listed on stock exchange in Luxembourg. The Company is engaged in the manufacturing of speciality steel and value added steel products. The Company caters to both domestic and international markets.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10467934 |
30/12/2013 |
2,000,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, 4, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL -
700001, INDIA |
B92649011 |
|
2 |
10467935 |
30/12/2013 |
1,500,000,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL
SERVICES BRANCH, 4, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001,
INDIA |
B92649375 |
|
3 |
10445936 |
03/09/2013 |
1,500,000,000.00 |
ICICI BANK LIMITED |
ZONAL OFFICE,
2B, GORKY TERRACE, KOLKATA, WEST BENGAL - 700017, INDIA |
B83508457 |
|
4 |
10413761 |
28/03/2013 * |
2,500,000,000.00 |
ICICI BANK LIMITED |
ZONAL OFFICE,
2B, GORKY TERRACE, KOLKATA, WEST BENGAL - 700017, INDIA |
B73021792 |
|
5 |
10411806 |
28/03/2013 * |
2,500,000,000.00 |
STATE BANK OF INDIA |
CORPORATE
ACCOUNTS GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34, J. L. NEHRU ROAD,
KOLKATA, WEST BENGAL - 700071, INDIA |
B72588452 |
|
6 |
10356533 |
31/08/2012 * |
1,000,000,000.00 |
STATE BANK OF HYDERABAD |
COMMERCIAL BRANCH,
TRINITY TOWERS, GROUND FLOOR, 83, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046,
INDIA |
B58306622 |
|
7 |
10338450 |
31/08/2012 * |
2,000,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34, J. L. NEHRU ROAD, KOLKATA, WEST
BENGAL - 700071, INDIA |
B57764573 |
|
8 |
10307478 |
19/03/2012 * |
2,000,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE BUILDING,
FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA -
400005, INDIA |
B35384932 |
|
9 |
10309946 |
16/09/2011 |
3,000,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU
CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA
- |
B22445860 |
|
10 |
10266515 |
25/07/2011 * |
2,500,000,000.00 |
STATE BANK OF INDIA |
CAG BRANCH, 34,
CHOWRINGHEE ROAD, KOLKATA, WEST B |
B17355231 |
* Date of charge modification
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
in millions) |
31.03.2013 (Rs.
in millions) |
|
A) Claims against the Company not acknowledged as debt |
|
|
|
Disputed Tax and
Duty for which the Company has preferred appeal before appropriate
authorities. |
|
|
|
Demand for Income Tax Matters |
194.000 |
194.000 |
|
Demand for Sales Tax |
323.200 |
197.700 |
|
Demand for Excise Duty and Service Tax |
649.800 |
649.300 |
|
Demand for Customs Duty |
8.300 |
8.300 |
|
Outstanding Labour Disputes |
4.800 |
4.400 |
|
Disputed Electricity duty rebate matters which is subjudice |
55.100 |
52.800 |
|
Disputed Demand for
Fuel Surcharge matter for which the Company has filed writ petition before
The Hon’ble High Court of Jharkhand at Ranchi. |
163.700 |
0.000 |
|
Disputed Demand for Mining matter for which the Company has filed writ
petition before The Hon’ble High Court of Jharkhand at Ranchi. |
194.000 |
0.000 |
|
# Out of the
above, stay orders against demand for Sales Tax amounting to Rs.23.700
Millions (31st March, 2013 : Rs. 74.400 Millions) and demand for Excise Duty
and Service Tax amounting to Rs. 4,32.400 Millions (31st March, 2013 : Rs.
2,60.600 Millions) have been obtained by the Company. |
||
|
|
|
|
|
B) Guarantees |
|
|
|
Corporate Guarantee Given by the Company to secure the financial assistance/accommodation
extended to other Bodies Corporate |
1505.600 |
1287.800 |
|
Bills discounted with Banks including against Letter of Credit |
1543.300 |
818.900 |
|
Note : In respect of the
contingent liabilities mentioned in Note 23(a) above, pending resolution of
the respective proceedings, it is not practicable for the Company to estimate
the timings of cash outflows, if any. In respect of matters mentioned in Note
23 (b) above, the cash outflows, if any, could generally occur during the
validity period of the respective guarantees. The Company does not expect any
reimbursements in respect of the above contingent liabilities. |
||
UNSECURED LOANS
|
Particulars |
31.03.2014 (Rs.
in millions) |
31.03.2013 (Rs.
in millions) |
|
Short-term Borrowings |
|
|
|
Commercial Papers From a Scheduled Bank |
650.000 |
0.000 |
|
Total |
650.000 |
0.000 |
|
|
|
|
STATEMENT OF STANDALONE
AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31TH JUNE, 2014
(Rs. In Millions)
|
Particulars |
|
|
Quarter Ended |
|
|
|
30.06.2014 |
|
|
|
|
(Unaudited) |
|
|
1. Income from
Operations |
|
|
|
|
(a) Net Sales / Income from Operations (Net of excise duty) |
|
|
9201.100 |
|
(b) Other Operating Income |
|
|
-- |
|
Total Income from
Operations (net) |
|
|
9201.100 |
|
2. Expenses |
|
|
|
|
a. Cost of Materials consumed |
|
|
2974.400 |
|
b. Purchase of stock-in-trade |
|
|
528.600 |
|
c. Changes in inventories of finished goods, work-in-progress, stock-in-trade and scrap |
|
|
(375.900) |
|
d. Power and Fuel |
|
|
922.400 |
|
e. Consumption of Stores and Spare Parts |
|
|
865.000 |
|
f. Employee Benefits expenses |
|
|
601.600 |
|
g. Depreciation and amortization expenses |
|
|
1074.900 |
|
h. Other Expenses |
|
|
2196.800 |
|
Total Expenses |
|
|
8607.800 |
|
3. Profit from Operations
before Other Income, Finance costs and Exceptional Items (1-2) |
|
|
593.300 |
|
4. Other Income |
|
|
122.500 |
|
5. Profit from
ordinary activities before Finance Costs and Exceptional Items (3 + 4) |
|
|
715.800 |
|
6. Finance costs |
|
|
1238.500 |
|
7. Profit / (Loss)
from ordinary activities after Finance Costs but before Exceptional Items (5
- 6) |
|
|
(522.700) |
|
8. Exceptional Items |
|
|
-- |
|
9. Profit / (Loss)
from Ordinary Activities before Tax (7 ± 8) |
|
|
(522.700) |
|
10. Tax Expense (Note 1 below) |
|
|
(161.200) |
|
11. Net Profit /
(Loss) from Ordinary Activities after Tax (9 ± 10) |
|
|
(361.500) |
|
12. Extraordinary Items (net of tax expenses) |
|
|
-- |
|
13. Net Profit /
(Loss) for the period (11 ± 12 ) |
|
|
(361.500) |
|
14. Paid-up Equity Share Capital [Face value Re.1 each] |
|
|
305.400 |
|
15. Reserves excluding Revaluation Reserve (as per Balance Sheet of the previous accounting year) |
|
|
--- |
|
16. Earning Per Share
(before / after Extraordinary Items) (of Re.1 each) (not annualised) |
|
|
|
|
Basic |
|
|
(1.19) |
|
Diluted |
|
|
(1.19) |
|
Part II |
|
|
|
|
A. PARTICULARS OF
SHAREHOLDING @ |
|
|
|
|
1. Public
Shareholding |
|
|
|
|
- Number of Shares |
|
|
152584880 |
|
- Percentage of Shareholding |
|
|
50.07% |
|
2. Promoters and
Promoter Group Shareholding |
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
- Number of Shares |
|
|
-- |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
|
-- |
|
- Percentage of shares (as a % of the total share capital of the company) |
|
|
-- |
|
b) Non-encumbered |
|
|
|
|
- Number of Shares |
|
|
152156900 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
|
100.00% |
|
- Percentage of shares (as a % of the total share capital of the company) |
|
|
49.93% |
@ Including Shares held by Custodians and against which Depository Receipts have been issued.
|
Particulars |
3 months ended 30.06.2014 |
|
B.
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
10 |
|
Disposed of during quarter |
10 |
|
Remaining unresolved at the end of the
quarter |
Nil |
Notes :
1. Effective from 01.04.2014, the company has charged depreciation in keeping with the requirement of schedule II to the companies Act, 2013. Consequently depreciation charges fro the quarter ended is higher by Rs. 108.400 Mullions with corresponding impact on the loss from ordinary activities of the company.
2. Tax expense comprises Current Tax and Deferred Tax, net of MAT Credit Entitlement.
3. Figures for the previous periods have been reclassified where considered necessary to conform to this year's classification.
4. Figures for the quarter ended 31st March, 2013 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the respective financial year.
5. The above results, after review by the audit committee, have been approved and taken on record by the Board of Directors at its meeting held on 31st July, 2014.
6. the auditor of the company have carried out a Limited Review of the aforesaid financial results for the quarter ended 30.06.2014 in terms of Clause 41 of the listing agreement with stock exchange.
STANDALONE
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
Rs.
In Millions
|
Particulars |
|
|
Quarter Ended |
|
|
|
30.06.2014 |
|
|
|
|
(Unaudited) |
|
|
1. Segment Revenue
(Net Sales / Income from Operations) |
|
|
|
|
a. Steel |
|
|
7579.000 |
|
b. Wire and Wire Ropes |
|
|
3666.700 |
|
c. Unallocated |
|
|
89.900 |
|
|
|
|
|
|
Total Segment
Revenue |
|
|
11335.600 |
|
|
|
|
|
|
Less: Inter-Segment Revenue |
|
|
2134.500 |
|
|
|
|
|
|
Net Sales / Income
from Operations |
|
|
9201.100 |
|
|
|
|
|
|
2. Segment Results
[Profit(+)/Loss(-) before tax and finance costs from each segment] |
|
|
|
|
a. Steel |
|
|
406.900 |
|
b. Wire and Wire Ropes |
|
|
307.800 |
|
c. Unallocated |
|
|
6.300 |
|
Total |
|
|
721.000 |
|
|
|
|
|
|
Less: |
|
|
|
|
a. Finance costs |
|
|
1238.500 |
|
b. Other Un-allocable Expenditure (Net of Un-allocable Income) |
|
|
5.200 |
|
|
|
|
|
|
Total Profit(+) /
Loss(-) before Tax |
|
|
(522.700) |
|
|
|
|
|
|
3. Capital Employed (Segment Assets less
Segment Liabilities) |
|
|
|
|
a. Steel |
|
|
38755.600 |
|
b. Wire and Wire Ropes |
|
|
8937.300 |
|
c. Unallocated |
|
|
1061.500 |
|
|
|
|
|
|
Total |
|
|
48754.400 |
FIXED ASSETS:
Tangible Assets
·
Land and Site Development
·
Freehold
·
Leasehold
·
Mining Lease and
Development
·
Buildings
·
Plant and Machinery
·
Railway Sidings
·
Electrical Installation
·
Water Treatment and
Supply Plant
·
Office Equipment
·
Furniture and Fixtures
·
Vehicles
Intangible Assets
· Computer Software
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.60.47 |
|
|
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
47 |
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.