MIRA
INFORM REPORT
|
Report Date : |
28.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
KIRLOSKAR FERROUS INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
13, |
|
|
|
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Country : |
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|
Financials (as
on) : |
31.03.2013 |
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|
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|
Date of
Incorporation : |
10.09.1991 |
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|
|
|
Com. Reg. No.: |
11-063223 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 686.540
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27101PN1991PLC063223 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEK00776G |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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|
Line of Business
: |
Manufacturer of industrial Castings of Non-malleable Cast Iron. |
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|
|
|
No. of Employees
: |
1242 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 16000000 |
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|
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a flagship company of “Kirloskar Group” having satisfactory
track record. Profit margin of the company seems to be good. Also financial
performance of the company seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are
reported to be regular. The company can be considered for business dealing at usual trade
terms and conditions. Note: The shares of the subject company are not traded on BSE and NSE
in last 30 days. |
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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under control,
said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up
from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry
retained its status as the favourable venture capital investors in 2013.
Pakistan has temporarily banned gold imports for the second time in six months,
as it tries to stem smuggling into India. India’s import duty on gold is 10 %
and curbs on purchases have dried up legal imports into what used to be the
world’s biggest bullion buyers. The World Gold Council puts the amount smuggled
into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed
that unclaimed bank deposits estimated to be about Rs 35000 mn be used for
education and awareness among depositors. According to the plan, deposits
that have not been claimed for at least 10 years will be transferred to the
scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long
term Rating = A+ |
|
Rating Explanation |
Having adequate degree of safety and carry
low credit rick |
|
Date |
21.06.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term Rating = A1 |
|
Rating Explanation |
Having very strong degree of safety and
carry lowest credit risk |
|
Date |
21.06.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. Parshuram |
|
Designation : |
Finance Controller |
|
Contact No.: |
91-9480409090 |
|
Date : |
25.02.2014 |
LOCATIONS
|
Registered Office : |
13, Laxmanroa Kirloskar Road, Khadaki, Pune – 411003, Maharashtra,
India |
|
Tel. No.: |
91-20-66084664 |
|
Mobile No.: |
91-9480409090 (Mr. Parshuram) |
|
Fax No.: |
91-20-25813208 / 25810209 |
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E-Mail : |
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|
Website: |
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|
Location : |
Owned |
|
|
|
|
Factory 1 : |
Bevinahalli Village, P.O. Hitnal, District – Koppal - 583
234, Karnataka, India |
|
Tel. No.: |
91-8539-286711/ 12/ 15/ 62/ 67 |
|
Fax No.: |
91-8539-286706/ 14 |
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E-Mail : |
|
|
Location : |
Owned |
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|
|
|
Factory 2 : |
Hotgi Road, Shivashahi, Solapur - 413 224, Maharashtra,
India |
|
Tel. No.: |
91-0217-2600211/ 12/ 13/ 14 15 |
|
Fax No.: |
91-0217-2600220 |
|
E-Mail : |
|
|
Location : |
Owned |
DIRECTORS
AS ON: 31.03.2013
|
Name : |
Mr. Atul C. Kirloskar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sanjay C. Kirloskar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R. V. Gumaste |
|
Designation : |
Managing Director |
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|
|
|
Name : |
Mr. A. R. Jamenis |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. V. Tikekar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N. Inamdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. G. Chitnis |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. N. Alawani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. C. S. Panicker |
|
Designation : |
Company secretary |
|
|
|
|
Name : |
Mr. Parshuram |
|
Designation : |
Finance Controller |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 31.12.2013
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9139327 |
6.66 |
|
|
72624617 |
52.89 |
|
|
81763944 |
59.55 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
81763944 |
59.55 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
810867 |
0.59 |
|
|
500 |
0.00 |
|
|
47500 |
0.03 |
|
|
858867 |
0.63 |
|
|
|
|
|
|
7670688 |
5.59 |
|
|
|
|
|
|
24900683 |
18.13 |
|
|
20187422 |
14.70 |
|
|
1926477 |
1.40 |
|
|
1377666 |
1.00 |
|
|
347142 |
0.25 |
|
|
200869 |
0.15 |
|
|
700 |
0.00 |
|
|
100 |
0.00 |
|
|
54685270 |
39.83 |
|
Total Public shareholding (B) |
55544137 |
40.45 |
|
Total (A)+(B) |
137308081 |
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) |
137308081 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of industrial Castings of Non-malleable Cast Iron. |
GENERAL INFORMATION
|
No. of Employees : |
1242 (Approximately) |
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Bankers : |
· Bank of Maharashtra, Pune · Axis Bank Limited · HDFC Bank Limited · Canara Bank · The Hongkong and Shanghai Banking Corporation Limited · ICICI Bank Limited · DBS Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
P. G. Bhagwat Chartered Accountants |
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|
|
|
Associates: |
· Kirloskar Industries Limited · Kirloskar Oil Engineers Limited · Kirloskar Pneumatic Company Limited · Kirloskar Brothers Limited |
CAPITAL STRUCTURE
AS ON: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
210000000 |
Equity Shares |
Rs.5/- each |
Rs.1050.000 Millions |
|
117000000 |
Preference Shares |
Rs.10/- each |
Rs.1170.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2220.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
137308081 |
Equity Shares |
Rs.5/- each |
Rs.686.540
Millions |
|
|
|
|
|
Reconciliation of the
shares at the beginning and at the end of the reporting period.
|
Particulars |
AS ON 31.03.2013 |
|
|
Number |
Rs. In Millions |
|
|
Equity shares |
|
|
|
Balance at the beginning of the year |
137,308,081 |
686.540 |
|
Shares issued during the year pursuant to conversion of warrants |
|
|
|
Balance at the end of the year |
137,308,081 |
686.540 |
Terms/rights attached
to equity shares
The Company has only one class of equity shares having a par value of 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of
shareholders holding more than 5 percent of the total shares
|
Particulars |
AS ON 31.03.2013 |
|
|
No. of shares held |
Percentage of holding |
|
|
Kirloskar Industries Limited |
66,738,876 |
48.61 |
Terms of Warrants:
The holders of 64,782,765 warrants were entitled to apply for one equity share of 5 each per warrant at a premium of ` 30 at any time within the warrant exercise period i.e., between 13th March, 2008 to 13th March, 2013.
Reconciliation of the
warrants outstanding at the beginning and at the end of the reporting period
|
Particulars |
Number of Warrants |
|
As on 31.03.2013 |
|
|
Balance at the beginning of the year |
64479849 |
|
Converted into equity shares during the year |
-- |
|
Warrants extinguished at the end of Warrant Exercise Period, i.e. 13th March, 2013 |
64479849 |
|
Balance at the end of the year |
-- |
|
Warrants pending for conversion into equity shares for which application money received at the end of the year |
-- |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
686.540 |
686.540 |
686.540 |
|
(b) Reserves & Surplus |
3380.244 |
3115.245 |
2904.030 |
|
(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) |
4066.784 |
3801.785 |
3590.570 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
804.619 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
514.754 |
420.551 |
379.681 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
1319.373 |
420.551 |
379.681 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
797.223 |
549.650 |
0.000 |
|
(b) Trade payables |
1997.598 |
2060.732 |
2565.054 |
|
(c) Other current
liabilities |
465.511 |
435.324 |
273.256 |
|
(d) Short-term provisions |
255.004 |
276.629 |
274.581 |
|
Total Current Liabilities
(4) |
3515.336 |
3322.335 |
3112.891 |
|
|
|
|
|
|
TOTAL |
8901.493 |
7544.671 |
7083.142 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3671.752 |
3622.990 |
2875.098 |
|
(ii) Intangible Assets |
11.907 |
14.967 |
13.150 |
|
(iii) Capital
work-in-progress |
1198.016 |
213.813 |
702.722 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
375.346 |
183.555 |
89.328 |
|
(e) Other Non-current
assets |
0.407 |
0.368 |
38.190 |
|
Total Non-Current Assets |
5257.428 |
4035.693 |
3718.488 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1547.789 |
1304.149 |
1590.283 |
|
(c) Trade receivables |
1531.671 |
1597.673 |
1346.776 |
|
(d) Cash and cash
equivalents |
145.810 |
136.150 |
184.025 |
|
(e) Short-term loans
and advances |
416.331 |
469.670 |
239.197 |
|
(f) Other current
assets |
2.464 |
1.336 |
4.373 |
|
Total Current Assets |
3644.065 |
3508.978 |
3364.654 |
|
|
|
|
|
|
TOTAL |
8901.493 |
7544.671 |
7083.142 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11981.090 |
10896.507 |
10917.581 |
|
|
|
Other Income |
24.912 |
20.845 |
19.806 |
|
|
|
TOTAL (A) |
12006.002 |
10917.352 |
10937.387 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
7672.013 |
7068.351 |
7812.049 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and By-products |
(167.339) |
48.526 |
(127.180) |
|
|
|
Employee benefits expense |
511.760 |
427.731 |
330.556 |
|
|
|
Other expenses |
2881.550 |
2419.397 |
1892.048 |
|
|
|
Prior period items |
0.000 |
0.051 |
(0.606) |
|
|
|
TOTAL (B) |
10897.984 |
9964.056 |
9906.867 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1108.018 |
953.296 |
1030.520 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
151.798 |
104.696 |
41.447 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
956.220 |
848.600 |
989.073 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
332.029 |
291.987 |
270.441 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
624.191 |
556.613 |
718.632 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
233.328 |
185.816 |
235.338 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
390.863 |
370.797 |
483.294 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
976.864 |
815.650 |
540.909 |
|
|
|
a)
Dividend |
64.480 |
64.480 |
64.481 |
|
|
|
b)
Tax on Dividend |
10.460 |
10.460 |
11.489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
171.635 |
201.788 |
201.788 |
|
|
|
Tax on Dividend |
29.169 |
32.735 |
32.735 |
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
50.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1191.863 |
976.864 |
815.650 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
17.190 |
5.271 |
15.341 |
|
|
TOTAL EARNINGS |
17.190 |
5.271 |
15.341 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3294.51 |
2183.74 |
3461.599 |
|
|
|
Stores & Spares |
29.203 |
19.372 |
7.472 |
|
|
|
Capital Goods |
645.961 |
116.319 |
6.161 |
|
|
TOTAL IMPORTS |
3969.674 |
2319.431 |
3475.232 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.85 |
2.70 |
3.52 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.26 |
3.40 |
4.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.21 |
5.11 |
6.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.10 |
7.59 |
11.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.15 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.39 |
0.14 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
1.06 |
1.08 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
686.540 |
686.540 |
686.540 |
|
Reserves & Surplus |
2904.030 |
3115.245 |
3380.244 |
|
Net
worth |
3590.570 |
3801.785 |
4066.784 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
804.619 |
|
Short term borrowings |
0.000 |
549.650 |
797.223 |
|
Total
borrowings |
0.000 |
549.650 |
1,601.842 |
|
Debt/Equity
ratio |
0.000 |
0.145 |
0.394 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
10917.581 |
10896.507 |
11981.090 |
|
|
|
(0.193) |
9.953 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
10,917.581 |
10,896.507 |
11,981.090 |
|
Profit |
483.294 |
370.797 |
390.863 |
|
|
4.43% |
3.40% |
3.26% |
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/1104/2012 |
Failing Date:- |
24/07/2012 |
Reg. No.:- |
ITXA/453/2013 |
Reg. Date:- |
07.03.2013 |
|
|
|||||||
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
KIRLOSKAR FERROUS INDUSTRIES LIMITED |
||||
|
Petn.Adv:- |
TEJVEER SINGH (0) |
|
|
||||
|
District:- |
PUNE |
||||||
|
|
|||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Admitted (Unready) |
Stage:- |
FOR DIRECTION |
||||
|
Last Date:- |
14/01/2013 |
|
|||||
|
Last Coram:- |
HON’BLE SHRI JUSTICE J.P. DEVADHAR HON’BLE SHRI JUSTICE M.S. SANKLECHA |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961 |
Under Section 260A |
|||||
UNSECURED LOAN
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Short term
borrowings |
|
|
|
Vendors' bills discounted |
15.964 |
0.000 |
|
|
|
|
|
Total |
15.964 |
0.000 |
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMY AND INDUSTRY
OVERVIEW
GLOBAL ECONOMY
Global economic developments over the last few months present a mixed picture. The US economy grew by 2.2 percent during 2012. China's economic growth in the first quarter of 2013 was 7.7 percent. China is gradually returning to faster growth after slow down in the earlier quarters. While other emerging and developing economies are struggling to maintain economic growth rates.
In the Euro zone area, sovereign debt problem has continued to weigh on the global recovery. After a brief phase of relative calm reflecting the large liquidity injection by the European Central Bank, renewed concerns have arisen about a sustainable solution to the sovereign debt problem and the increasing vulnerability of the banking sector. Consequently, risk aversion has increased.
All these salient global happenings have resulted into 'pull back' of demand situation for Indian exporters, which will perhaps further increase import – export gap, leading to increase in current account deficit.
INDIAN ECONOMY
In 2010, the Indian Economy rebounded from the global financial crisis in large part because of strong domestic demand and growth exceeded 8 percent year-on-year in real terms. India's economic growth began slowing in 2011 because of a tight monetary policy, intended to address persistent inflation, and a decline in investment, caused by investor pessimism about domestic economic reforms and about the global situation. High international crude prices have increased the government's fuel subsidy expenditure, contributing to a higher fiscal deficit and a worsening current account deficit. In late 2012, the Indian Government announced reforms and deficit reduction measures to reverse India's slowdown. The Government undertook long anticipated measures towards fiscal consolidation by reducing fuel subsidies and selling stakes in public enterprises.
India's economic growth rate during fiscal 2012-13 is estimated to be lower at 5 percent, lowest in the decade, on account of poor performance of manufacturing, agriculture and services sector.
India's GDP growth in Quarter 3 of 2012-13, at 4.5 percent, (compared to 6 percent same quarter last year) was the weakest in the last 15 quarters. The services sector growth, hitherto the mainstay of overall growth, has also decelerated to its slowest pace in a decade.
India's exports, which had surpassed pre-crisis levels within a year in 2010-11 with a record 40.5 percent growth, continued growing even in 2011-12, but were finally affected by the global slowdown in 2012-13. The reason for decline in export was on account of slowing down of GDP growth of partner countries specially Euro zone countries.
India imports around 80 percent of its annual crude oil consumption and gold worth billions of dollars and that disturbs the whole balance of trade. India's current account deficit has increased due to weak exports, heavy gold and crude oil imports and a slowdown in inward remittances from overseas Indians.
The Current account deficit of the country and uncertain global economic environment, particularly unfolding of Euro zone sovereign debt crisis, which impacted the level of foreign institutional investment flows in the foreign exchange market lead to depreciation of rupee against dollar. Rupee depreciation also resulted in increase in inflation and thus, stagnant growth of the economy.
IRON AND STEEL
INDUSTRY
India's rank in the world order of steel production remained unchanged at fourth slot with an output of 76.7 million tonnes, despite logging the highest growth of 4.2 percent among major producing nations in 2012.
IRON ORE
Ban on iron ore mining in Karnataka has adversely affected the iron ore situation in terms of supply, quality and cost. Auction of iron ore from closed mines has been of a low quality and with high cost. Added to this 12 percent forest development tax has created additional burden to the industries in Karnataka dependent on the iron ore.
More transparent norms for iron ore mining are now being put in place in many States so that all stakeholders benefit, and the first results of these measures should be visible in Karnataka sometime during financial year 2013-2014, in the form of improved supply.
The iron ore procurement continues under e-auction mode. Presently 8 mines are in operation in Karnataka and the annual production capacity has been capped at 30 million tones per annum by the Supreme Court.
However, on 18th April, 2013 the Supreme Court allowed limited resumption of mining in Karnataka State by 55 'A' category mines and 63 'B' categories mines, but set an annual production cap of 30 million tones for mining in the districts of Bellary, Tumkur and Chitradurga. Since these companies have to fulfill all reclamation and rehabilitation obligations and pay fines before they can resume mining operations, it will take some time before the availability of iron ore improves.
The Supreme Court also cancelled 49 mining leases of the 'C' category mines and directed that they be auctioned amongst end users. The floor price for such auctions would be based on the market value and ore to be used for captive purposes only. No sale / export would be permissible from 'C' category of mines. Since the Company is actual user and does not own any mine, it can apply for such mines.
COKE
Because of demand fluctuations during the global financial crisis, metallurgical coke prices have been reacting along the lines of fuel prices. After a scenario of continuous increase in coke prices, in 2010 and 2011, the prices started to decline between mid-2011 to end-2012. China has withdrawn 40 percent export tax on coke from January 2013. Chinese coke is likely to be available once again at comparable prices.
AUTO INDUSTRY
The auto industry is showing its first decline in annual sales in 10 years as a result of high interest rates and high fuel costs. The auto industry is estimated to have a growth of around 3 to 5 percent for the current financial year 2012-13 from the earlier estimate of 10 to 12 percent. Overall economic situation in the country, high petrol price, inflation, hi high vehicle finance cost and differential excise rate are among the factors affecting overall industry.
TRACTOR INDUSTRY
The Indian tractor industry has been hit by lower sales due to a host of issues ranging from deficient monsoon, mining curbs, delays in infrastructure projects, etc., where tractors are used on a large scale. The industry may face a further slowdown in demand, if rural credit availability does not increase and deficit monsoon continues for 2013-14.
COMPANY PERFORMANCE
Inspite of the closure of mines and non availability of iron ore at reasonable price, the Company has been able to run both the blast furnaces during the year. Commissioning of sinter plant helped the Company to consume iron ore fines instead of lump ore and get the benefit of price difference and reduction in coke consumption.
Even though sluggish market conditions prevailed in the tractor and auto industry, the Company managed to minimise the impact on its production.
The Company achieved net sales of Rs. 11,981 million (previous year Rs. 10,896 million). Sales value has shown a growth of 10 percent in spite of stoppage of one of the mini blast furnace aggregating to 73 days for relining and major maintenance. Further slowdown in Tractor industry and auto sector also impacted the sales of castings.
In terms of volume growth in sales, Pig Iron sales has increased by 20 percent, while castings sales reduced by 5 percent compared to previous year.
The profit before tax for the year stood at 624.19 million as compared to 556.61 million of the previous year after providing for depreciation and amortization showing an improvement of 12 percent over the previous year.
During the year , the fund based utilization of working capital (for financing the iron ore purchase under e-auction) was for the entire year, as compared to utilization for only half of the year during the previous year ie. 2011-12 resulting in increased interest cost.
During the year, the Company availed term loan and buyers credit aggregating to Rs. 904.600 millions for the import of capital equipments and machinery.
OPERATIONAL
PERFORMANCE
The slowdown in the tractor industry as well as automobile industry has impacted the production of castings with consequent effect on sales.
The Company sold 58,725 MT castings aggregating to Rs. 4,420 million during financial year 2012-13 as compared to 62,136 MT castings aggregating to Rs. 4,493 million in the previous year.
The Company sold 236,633 MT of pig iron valued at Rs. 6,771 million during financial year 2012-13 as compared to 197,524 MT of pig iron valued at Rs. 5,626 million in the previous year.
Sinter plant which functioned for part of previous year, was in operation throughout the year under consideration. The use of sinters in place of iron ore lumps in the Mini Blast Furnace has reduced the consumption of iron ore lumps substantially and consequently reduced the cost of pig iron manufacture. The Company faced many problems in getting iron ore supplies, but managed to ensure availability of iron ore throughout the year to maintain its operations.
Due to closure of mines and demand supply gap, iron ore prices have remained high. Available iron ore has been of a low quality and this has affected the productivity and the cost of manufacture.
The demand for high grade iron ore fines increased because of newly installed Pallet Plants. This has resulted in pushing up the prices of iron ore fines.
Many steel manufacturers started dumping pig iron into the market due to the sluggish steel market resulting in lower market demand for pig iron during the financial year 2012-13. Pig iron prices have come down substantially in last four months of 2012–13.
Coke prices in the beginning of the year was at USD 350 per MT and the prices have come down to a level of USD 290 per MT by the end of the year. Rupee depreciated against dollar during this period, hence full benefit of coke price reduction could not be materialized in rupee terms.
Thus, the Company faced a challenging task of managing both the production and the cost of production in these adverse conditions and took appropriate and timely decisions to ensure uninterrupted production and at the same time also ensured that the cost of production was also kept under control.
CONTINGENT
LIABILITIES
|
|
As on 31.03.2013 |
|
Central Excise (matter subjudice) |
5,556,524 |
|
Service Tax (matter subjudice) |
11,350,757 |
|
Income Tax (matter subjudice) |
50,706,771 |
|
Sales Tax (matter subjudice) |
5,350,856 |
|
Interest on Electricity Tax (matter subjudice) |
604,782 |
|
Labour Matters (matter subjudice), to the extent quantifiable |
1,747,075 |
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31,
2013
(RS. IN MILLIONS)
|
Particulars |
Quarter ended |
Nine months ended |
||
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1 |
Income from Operations |
|
|
|
|
|
(a) Net sates/income from operations (Net
of excise duty) |
3164.500 |
3070.000 |
8859.800 |
|
|
(b) Other Operating Income |
-- |
-- |
-- |
|
|
Total
income from operations (net) |
3164.500 |
3070.000 |
8859.800 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
2185.400 |
2001.500 |
5651.200 |
|
|
(b) Purchases of stock-in trade |
-- |
-- |
-- |
|
|
(c) Changes in inventories of finished
goods. work-in-progress and stock in trade |
(123.800) |
(27.400) |
(23.900) |
|
|
(d) Employee benefits expense |
127.600 |
128.100 |
372.100 |
|
|
(e) Depreciation and Anmortisation Expenses |
82.800 |
84.800 |
254.100 |
|
|
(f) Other Expenses |
679.200 |
679.300 |
2068.300 |
|
|
Total
expenses |
2951.200 |
2866.300 |
8321.800 |
|
3 |
Profit/ (Loss) from operations before other
Income, finance costs and exceptional Items (1-2) |
213.300 |
203.700 |
538.000 |
|
4 |
Other Income |
3.200 |
10.500 |
19.800 |
|
5 |
Profit/ (Loss) from operations before other
income, finance costs and exceptional items (3+4) |
216.500 |
214.200 |
557.800 |
|
6 |
Finance Costs |
33.500 |
34.800 |
97.800 |
|
7 |
Profit/ (Loss) from ordinary activities
after finance cost but before exceptional items (5-6) |
183.000 |
179.400 |
460.000 |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit/ (Loss) from ordinary activities
before tax (7+8) |
183.000 |
179.400 |
460.000 |
|
10 |
Tax expenses |
|
|
|
|
|
Current Tax (includes adjustment of previous years) |
57.700 |
60.400 |
156.900 |
|
|
Deferred Tax |
7.300 |
0.900 |
4.600 |
|
|
Total Tax Expense |
65.000 |
61.300 |
161.500 |
|
11 |
Net Profit / (Loss) from ordinary
activities after tax (9-10) |
118.000 |
118.100 |
298.500 |
|
12 |
Extraordinary item (net of tax expense) |
-- |
-- |
-- |
|
13 |
Net Profit / (Loss) for the period (11-12) |
118.000 |
118.100 |
298.500 |
|
14 |
Share of profit' (loss) of associates |
-- |
-- |
-- |
|
15 |
Minority Interest |
-- |
-- |
-- |
|
16 |
Net Profit/ (Loss) after taxes, minority
interest and share of profit/(loss) of associates (13+14+15) |
118.000 |
118.100 |
298.500 |
|
17 |
Paid up equity share capital (Face Value of
Rs10/-each) |
686.540 |
686.540 |
686.540 |
|
18 |
Reserve excluding Revaluation Reserve as
per Balance Sheet of previous accounting year |
|
|
|
|
19.i |
Earnings per share (before extraordinary items)
of Rs.10/- each (not annualised): |
|
|
|
|
|
(a) Basic |
0.86 |
0.86 |
2.17 |
|
|
(b) Diluted |
0.86 |
0.86 |
2.17 |
|
19.ii |
Earnings per share (after extraordinary
items) of Rs.10/- each (not annualised) |
|
|
|
|
|
(a) Basic |
0.86 |
0.86 |
2.17 |
|
|
(b) Diluted |
0.86 |
0.86 |
2.17 |
|
|
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of shares |
55,544,137 |
55,544,137 |
55,544,137 |
|
|
- Percentage of shareholding |
40.45 |
40.45 |
40.45 |
|
2 |
Promoters and Promoter group shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of shares |
NIL |
NIL |
NIL |
|
|
- Percentage of shares (as a % of the total
shareholding of Promoter & Promoter group) |
NIL |
NIL |
NIL |
|
|
- Percentage of shares (as a % of the total
Share Capital of the Company) |
NIL |
NIL |
NIL |
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of shares |
81,763,944 |
81,763,944 |
81,763,944 |
|
|
- Percentage of shares (as a % of the total
shareholding of Promoter & Promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage of shares (as a % of the total
Share Capital of the Company) |
59.55 |
59.55 |
59.55 |
|
|
|
|
|
|
|
B |
INVESTOR
COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
NIL |
|
|
|
|
Received during the quarter |
16 |
|
|
|
|
Disposed off during the quarter |
16 |
|
|
|
|
Remaining unresolved at the end of the
quarter |
NIL |
|
|
Notes:
1. The Company operates only in one segment, namely Iron Castings.
2. The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 30, 2014 and are also subjected to "Limited Review" by the Statutory Auditors.
3. Figures have been regrouped wherever necessary.
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10412600 |
21/03/2013 |
508,243,033.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B71053193 |
|
2 |
10371918 |
08/08/2012 |
400,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B56151426 |
|
3 |
10021719 |
20/03/2013 * |
4,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B71052484 |
* Date of charge modification
FIXED ASSETS
· Buildings
Plant
and Equipment
Furniture
and Fixtures
Vehicles
Office
Equipment
Computers
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.61.94 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--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 |
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 |
|
53 |
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.