MIRA INFORM REPORT

 

 

Report Date :

11.01.2014

 

IDENTIFICATION DETAILS

 

Name :

USHA MARTIN LIMITED (w.e.f. 22.07.2003)

 

 

Formerly Known As :

USHA BELTRON LIMITED

 

 

Registered Office :

2 A, Shakespeare Sarani, P.S. Shakespeare Sarani, Mangal Kalash, Kolkata – 700 071, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

22.05.1986

 

 

Com. Reg. No.:

21-091621

 

 

Capital Investment / Paid-up Capital :

Rs.305.400 Millions

 

 

CIN No.:

[Company Identification No.]

L31400WB1986PLC091621 (New)

L99999WB1986PTC091621 (Old)

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALU01301G

 

 

Legal Form :

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

 

 

Line of Business :

Subject is engaged in the manufacturing of speciality steel and value added steel products.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 62000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Jhawar Group. It is an established company having a satisfactory track record.

 

Profit margin of the company seems to be low.

 

However, the ratings reflects 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 and improvement in operating performance in FY13.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually 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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

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 31-03-2012.

 

 

LOCATIONS

 

Registered 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

Fax No.:

91-33-22821660/ 1971/ 39800400

E-Mail :

gdsaini@ushamartin.co.in

r.jhawar@ubest.sprintrpg.ems.net.in

kalyanc@ushamartin.co.in

investor_relation@ushamartin.co.in

Website :

http://www.ushamartin.com

 

 

Corporate Office :

Agarwal Estate, 168 CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Tel. No.:

91-22-26160176/ 26528477

Fax No.:

91-22-26526774

Email:

marketing-west@ushamartin.com

 

 

Administrative Office :

Usha Alloys and Steel Division, Post Box 147, Jamshedpur – 831 001, Jharkhand, India

Tel No.:

91-657-2386052/ 2386070

 

 

Factory 1 :

Wire Ropes and Speciality Products Division:

Tatilswai, Ranchi – 835 103, Jharkhand, India

 

 

Factory 2 :

Steel Division:

Adityapur, Jamshedpur – 831 001, Jharkhand - India

 

 

Factory 3 :

Construction Steel Division-North:

Nawalganj, Agra – 282 006, Uttar Pradesh, India

 

 

Factory 4 :

Wire and Wire Rope Division North:

Hoshiarpur – 146 024, Punjab, India

 

 

Factory 5 :

Iron Ore Mines:

Barajamda Jharkhand, Barajamda – 833 221, Jharkhand, India

 

 

Factory 6 :

Coal Mines:

Daltongunj, Jharkhand, Daltongunj – 822 101, Jharkhand, India

 

 

Factory :

Also located at:

 

·         Sri Perumbudur, Tamilnadu, India

·         Bangalore, Karnataka, India

·         Silvassa, (U M Cables)

 

 

Wind Farm :

Speciality Product Division - South:

Sri Perumbudur, Chennai – 602 105, Tamilnadu, India

 

 

Mines :

·         Barajamda, Jharkhand, India

·         Daltonganj, Jharkhand, India

 

 

Overseas Office:

·         Navanakoran Industrial Estate, Thailand (Usha Siam Steel Industries)

·         Jebel Ali Free Zone, Dubai, UAE (Brunton Wolf Wire Ropes)

·         Worksop, Nottinghamshire, UK (Usha Martin UK)

 

 

DIRECTORS

 

As on 31.03.2013

 

Name                    

Mr. B.K. Jhawar

Designation

Chairman Emeritus

 

 

Name :

Mr. Prashant Jhawar

Designation :

Chairman

 

 

Name

Mr. Rajeev Jhawar

Designation

Managing Director

Qualification :

B. Com (Hons)

Date of Appointment :

01.10.1997

 

 

Name

Dr. Vijay Sharma

Designation

Joint Managing Director [Steel Business]

 

 

Name :

Mr. Brij K Jhawar

Designation :

Director

 

 

Name :

Mr. R S Thakur

Designation :

Director

 

 

Name :

Mr. S Singhal

Designation :

Director

 

 

Name :

Mrs. Ramni Nirula

Designation :

Director

 

 

Name :

Mr. G N Bajpai

Designation :

Director

 

 

Name :

Mr. Nripendra Misra

Designation :

Director

 

 

Name

Mr. Jitender Balakrishnan

Designation

Director

 

 

Name

Dr. Vijay Sharma

Designation

Executive Director and Chief Executive [Steel Business]

Qualification :

B. Tech, M.Sc, PGD in BA Phd (Metallurgical Engineering)

Date of Appointment :

06.01.2010

 

 

Name :

Mr. Pravin Kumar Jain

Designation :

Executive Director and Chief Executive [Wire and Wire Ropes Business]

Qualification :

B. Tech, MBA

Date of Appointment :

01.09.2009

 

 

KEY EXECUTIVES

 

INDIA

Name :

Mr. A.K. Somani

Designation :

Chief Financial Officer and Company Secretary

Qualification :

B. Com., C.A. C.S

Date of Appointment :

03.04.1990

 

 

Name :

Mr. Debasish Mazumder

Designation :

Associate President [Steel]

 

 

Name :

Mr. Sanjay Nath

Designation :

Senior Vice President [Sales and Marketing]

 

 

Name :

Mr. D.J. Basu

Designation :

Senior Vice President [HR]

 

 

Name :

Mr. S.K. Jala

Designation :

Senior Vice President [IT]

 

 

Name :

Mr. Rajesh Sharma

Designation :

Senior Vice President [Wire and Wire Rope Division]

 

 

Name :

Mr. Sunil Gupta

Designation :

Senior Vice President [Commercial]

 

 

Name :

Mr. Anjan Kumar Dey

Designation :

Senior Vice President [Iron Making]

 

 

Name :

Mr. Malay Kumar De

Designation :

Senior Vice President [Metallurgical Services]

 

 

Name :

Mr. Arvind Kapoor

Designation :

Vice President [Marketing]

 

 

EUROPE

Name :

Mr. S. Jodhawat

Designation :

Chief Executive Officer – Usha Martin International Limited

 

 

Name :

Mr. Paul Scutt

Designation :

Managing Director – European Marine and Management

 

 

Name :

Mr. Len Allen

Designation :

Director Operation – Brunton Shaw UK

 

 

Name :

Mr. Henk Steenbergen

Designation :

General Manager – De Ruiter Staalkabel B.V

 

 

Name :

Mr. Franco Clerici

Designation :

Director - Group R and D and Technical Services-Usha Martin Italia SRL

 

 

SOUTH EAST ASIA

Name :

Mr. Amogh Sharma

Designation :

Managing Director – Usha Siam Steel Industries Public Company Limited

 

 

Name :

Mr. Tapas Ganguly

Designation :

Chief Executive Officer – Usha Martin Singapore Pte Limited

 

 

MIDDLE EAST

Name :

Mr. S. Mazumder

Designation :

Sr. DGM, Sales and Marketing – Brunton Wold Wire Ropes, Fzco.

 

 

UNITED STATES OF AMERICA

Name :

Mr. Jeffrey Schipani

Designation :

President – Usha Martin Americas Inc.

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

5995267

2.25

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

86311935

32.44

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

92307202

34.69

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals (Non-Residents Individuals / Foreign Individuals)

2422983

0.91

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

33336135

12.53

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

35759118

13.44

Total shareholding of Promoter and Promoter Group (A)

128066320

48.13

(B) Public Shareholding

 

 

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

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

34610528

13.01

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

3740

0.00

http://www.bseindia.com/include/images/clear.gifInsurance Companies

14648796

5.51

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

19268057

7.24

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

68531121

25.76

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

 

 

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

23564784

8.86

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

 

 

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

25130363

9.44

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

20794057

7.81

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

69489204

26.12

Total Public shareholding (B)

138020325

51.87

Total (A)+(B)

266086645

100.00

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

0

0.00

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

19205345

0.00

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

19449790

0.00

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

38655135

0.00

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

304741780

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the manufacturing of speciality steel and value added steel products.

 

 

Products :

Products Description

 

Item Code No.

Wire Ropes, Strands Including Locked Coil, Wire Rope

7312

Wires

7217

Wire Rods

7213

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity $

Actual Production

a. Wire Rods

M.T.

400,000

318,567

b. Bars

M.T.

323,000

173,048

c. Billets

M.T.

1,000,000

500,140

d. Pig Iron/Hot Metal

M.T.

570,000

292,994

e. Sponge Iron

M.T.

300,000

237,209

f. Rolled Products

M.T.

72,300

42,581

g. Wire Ropes, Strands including Locked Coil Wire Ropes

M.T.

129,708

104,004

h. Wires

M.T.

111,060

80,087

i. Bright Bar

M.T.

25,480

19,278

Conveyor Cord

M.T.

3,600

1,786

j. Wire Drawing and Allied Machines

Nos.

60

12

k. Hydraulic Machines including Presses

Pcs.

100

60

n. Blocks, Dies etc.

Sets

400

19

Ferrules, Slings, Fitting

Pcs.

700,000

116,057

l. Equipment for Prestressed Concrete System

Pcs.

6,500,000

1,892,326

m. Jointing Equipment

Pcs.

100,000

20,637

 

NOTES:

 

·         $ As certified by the Management.

·         a Including internal consumption 192,229 M.T.

·         b Including internal consumption 16,006 M.T.; excluding trial production Nil M.T

·         c Including internal consumption 503,410 M.T. and purchase (net) 6,895 M.T.; excluding trial production Nil M.T.

·         d Including internal consumption 312,286 M.T. excluding trial run production 45,669 M.T.

·         e Including internal consumption 240,123 M.T.; excluding trial production Nil M.T.

·         f Including internal consumption 99 M.T.

·         g Including internal consumption 3,100 M.T.

·         h including internal consumption 7,447 M.T.

·         i Including internal consumption 2,977 M.T.; excluding trial production Nil M.T.

·         j Including internal consumption 6 Nos.

·         k Including internal consumption Nil Sets.

·         l Including internal consumption 16,277 Pcs.

·         m Including internal consumption Nil Pcs.

·         n Including internal consumption 2 Sets

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of India

·         Axis Bank Limited

·         ICICI Bank Limited

·         HDFC Bank Limited

·         IndusInd Bank Limited

·         Yes Bank Limited

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

From Financial Institution (Rupee Loans)

4200.000

4500.000

From Banks

 

 

Rupee Loans

10940.000

5800.000

Foreign Currency Loans

7817.000

9410.900

Short-term borrowings

 

 

Working Capital Loans from Banks

3576.500

2030.200

Total

26533.500

21741.100

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.22,000 (31st March, 2012 : Rs.25,000) is repayable in fourteen quarterly installments commencing from 20th June, 2014 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.20,000 (31st March, 2012 : Rs. 20,000) is repayable in eighteen quarterly installments commencing from 20th June, 2014 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.9,000 (31st March, 2012 : Rs.10,000) is repayable in sixteen quarterly installments commencing from 1st April 2014 to 1st January, 2018. Interest is payable on monthly basis at Base rate of the Bank plus 2% p.a.

 

(d) Rupee term loan from a Bank amounting to Rs. 6,400 (31st March, 2012 : Rs. 8,000) is repayable in fifteen quarterly installments from 29th April, 2014 to 29th October, 2017. Interest is payable on monthly basis at Base rate of the Bank plus 1.75% p.a.

 

(e) Rupee term loan from a Bank amounting to Rs. 16,000 (31st March, 2012: Rs. 20,000) is repayable in seven quarterly installments from 30th June, 2014 to 31st December, 2015. Interest is payable on monthly basis at Base rate of the Bank plus 2.15% p.a.

 

(f) Rupee term loan from a Bank amounting to Rs. 18,000 (31st March, 2012: Rs. 20,000) is repayable in ten quarterly installments commencing from 30th June, 2014 to 30th September, 2016. Interest is payable on monthly basis at Base rate of the Bank plus 1.15% p.a.

 

(g) Rupee term loan from a Bank amounting to Rs. 25,000 (31st March, 2012: Rs. Nil) 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.

 

(h) Rupee term loan from a Bank amounting to Rs. 25,000 (31st March, 2012: Rs. Nil) 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.

 

(i) Rupee term loan from a Bank amounting to Rs. 10,000 (31st March, 2012 :Rs. Nil) is repayable in thirteen quarterly installments commencing from 12th May, 2014 to 12th May, 2017. Interest is payable on monthly basis at Base rate of the Bank plus 1.00% p.a.

 

(j) Foreign Currency term loan from a Bank amounting to Rs. 67,856 (31st March, 2012: Rs.63,588) 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.

 

(k) Foreign Currency term loan from a Bank amounting to Rs. 2,714 (31st March, 2012: Rs.12,717) is repayable on 16th May, 2014. Interest is payable on half yearly basis at six months JPY LIBOR plus 1.40% p.a.

 

(l) Foreign Currency term loan from a Bank amounting to Rs. 7,600 (31st March, 2012 : Rs. 17,804) is repayable in two equal quarterly installments commencing from 16th May, 2014 to 16th August, 2014. Interest is payable on half yearly basis at six months JPY LIBOR plus 2% p.a.

 

SHORT-TERM BORROWINGS

 

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.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar,

Kolkata – 700 091, West Bengal, India

 

 

Subsidiary:

·         Usha Martin International Limited (UMIL) Subsidiary

·         Usha Martin Americas Inc. (UMAI)

·         Usha Martin UK Limited (UMUK)

·         UMICOR Africa (Pty) Limited (UMICOR)

·         Usha Martin Vietnam Company 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)

·         U M Cables Limited (UMCL)

·         Usha Martin Power and Resources Limited (UMPRL)

·         Bharat Minex Private Limited (BMPL)

 

 

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)

 

 

Substantial Interest in voting power of the entity:

·         UMI Special Steel Limited (UMISSL ) - (under liquidation)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

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:

 

2,42,74,715 (31st March, 2012 : 80,19,495) Equity Shares are represented by Global Depository Receipts (GDRs) out of above paid up Equity Shares.

 

(b) 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 on 31.03.2013

UMIL Shares and Stock Broking Services Limited

36673238

[12.68%]

HSBC Global Investment Funds Mauritius Limited

@

@

Usha Martin Ventures Limited

19822588

[6.50%]

Peterhouse Investments Limited

18971455

[6.23%]

Peterhouse Investments India Limited (PIIL)

20767330

[6.81%]

Deutsche Bank Trust Company Americas

24274715

[7.97%]

 

@ Not applicable as the holding is less than 5%

 

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

305.400

305.400

305.400

(b) Reserves & Surplus

15143.800

15003.300

15265.100

(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)

15449.200

15308.700

15570.500

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

22957.000

19710.900

13195.000

(b) Deferred tax liabilities (Net)

2079.800

2038.400

2148.800

(c) Other long term liabilities

5010.800

4114.200

1635.800

(d) long-term provisions

285.300

180.500

166.100

Total Non-current Liabilities (3)

30332.900

26044.000

17145.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3576.500

2030.200

1503.700

(b) Trade payables

14365.300

13685.100

9379.100

(c) Other current liabilities

6922.100

3814.100

5633.700

(d) Short-term provisions

149.500

54.800

453.800

Total Current Liabilities (4)

25013.400

19584.200

16970.300

 

 

 

 

TOTAL

70795.500

60936.900

49686.500

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

32852.700

29065.700

27472.300

(ii) Intangible Assets

19.500

23.200

2.900

(iii) Capital work-in-progress

11736.100

7624.900

3824.800

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1747.800

1869.500

1869.500

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

2552.500

2085.600

1567.800

(e) Other Non-current assets

63.600

202.100

114.900

Total Non-Current Assets

48972.200

40871.000

34852.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

80.000

0.000

0.000

(b) Inventories

13056.500

12127.400

9626.600

(c) Trade receivables

4907.200

3597.100

2834.800

(d) Cash and cash equivalents

1231.100

2531.800

1129.900

(e) Short-term loans and advances

2065.000

1333.500

1042.800

(f) Other current assets

483.500

476.100

200.200

Total Current Assets

21823.300

20065.900

14834.300

 

 

 

 

TOTAL

70795.500

60936.900

49686.500

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

30445.300

28368.900

25247.100

 

 

Other Income

432.200

426.400

488.100

 

 

TOTAL                                     (A)

30877.500

28795.300

25735.200

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

11286.800

13140.000

10690.500

 

 

Purchases of Stock-in-trade

35.100

35.400

37.600

 

 

Employees Benefits Expense

1767.800

1520.900

1332.800

 

 

Other Expenses

13108.700

12403.000

10029.700

 

 

Adjustment of Items Capitalised and Departmental Orders for own consumption

(171.200)

(35.000)

(30.400)

 

 

Changes in inventories of Finished Goods, Work-in-progress, Stock-in-trade and Scrap

(873.000)

(2357.000)

(1365.500)

 

 

TOTAL                                     (B)

25154.200

24707.300

20694.700

 

 

 

 

 

Less

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

5723.300

4088.000

5040.500

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3267.700

2548.500

1822.600

 

 

 

 

 

 

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

2455.600

1539.500

3217.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2352.400

1977.600

1764.900

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

103.200

(438.100)

1453.000

 

 

 

 

 

Less

TAX                                                                  (H)

32.700

(110.400)

457.700

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

70.500

(327.700)

995.300

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

226.700

554.400

411.100

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

20.000

0.000

500.000

 

 

Proposed Dividend on Equity Shares and tax thereon

53.500

0.000

352.000

 

 

Transfer to Capital Redemption Reserve

0.000

0.000

0.000

 

BALANCE CARRIED TO THE B/S

223.700

226.700

554.400

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods (On FOB basis)

4967.200

4681.400

3956.100

 

 

Interest Received

6.200

5.700

5.000

 

 

Service Charges

0.700

0.400

0.300

 

 

Dividend

29.800

19.900

165.000

 

 

Sale of certified emission reduction (carbon credit)

0.000

0.000

15.500

 

TOTAL EARNINGS

5003.900

4707.400

4141.900

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

5482.800

5363.300

3936.800

 

 

Components and Spare Parts

315.400

360.400

491.800

 

 

Capital Goods

1606.200

419.300

486.500

 

TOTAL IMPORTS

7404.400

6143.000

4915.100

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.23

(1.08)

3.27

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
0.23

(1.14)

3.87

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
0.34

(1.54)

5.76

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
0.18

(0.85)

3.30

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.01

(0.03)

0.09

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.72

1.42

0.94

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.87

1.02

0.87

 

 

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

No

10]

Designation of contact person

No

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 Company’s operating profit increased to Rs. 7052.000 Millions. On consolidated basis and Rs. 5723.300 Millions on standalone basis from Rs. 4977.700 Millions and Rs. 4088.000 Millions respectively. On consolidated basis, the Company achieved profit after tax and minority interest of Rs. 788.400 Millions against Rs. 36.100 Millions. in previous year. On standalone basis, the profit after tax is Rs. 70.500 Millions against loss of Rs. 327.700 Millions. in the previous year. The turnover for the year increased to Rs. 36218.300 Millions on consolidated basis and Rs. 30445.300 Millions on standalone basis against Rs. 33608.200 Millions and Rs. 28368.900 Millions respectively in the previous year.

 

PROJECTS

 

The cost optimisation projects undertaken by the Company have progressed well. The major projects successfully commissioned during the financial year 12- 13 are 30 MW CPP, Char Beneficiation, DRI-V, 100 TPD Lime Kiln, Beneficiation Plant Phase-1, EBNER annealing furnace and Fume Exhaust System of SMS-2. The projects, which are under advanced stage of implementation, namely pellet plant, coke oven, Iron ore Beneficiation Plant Phase-2, DRI-IV, Waste Heat based 35 MW Captive Power plant and other related projects are expected to be commissioned in phases over FY 13-14. Upon completion, these projects would significantly strengthen cost base, which in turn would enhance profitability and competitiveness.

 

BUSINESS OUTLOOK

 

The adverse economic factors, such as higher level of fiscal deficit, expanding trade gap, deteriorating current account deficit, rising inflation and resultant higher interest rates which have caused industrial slow down and worsened economic environment in the financial year, continue to prevail with serious challenges to Indian economy even in current financial year. However with the advantage of a higher level of integration with mineral resources and range of value added products, the Company is hopeful of performing better in future.

 

SUBSIDIARIES

 

The international subsidiaries provide significant synergy and support to the Company’s business and performance. All the operating subsidiaries of the Company have continued to perform reasonably well in the prevailing economic and business conditions during the year.

 

The facilities of Usha Siam Steel Industries Public Company Limited [USSIL], a key subsidiary of the Company which was severely affected in devastating floods in Thailand in October 2011, has resumed normal operations during the later part of the financial year.

 

JOINT VENTURES

 

All the key joint ventures formed by the Company namely, Pengg Usha Martin Wires Private Limited, Gustav Wolf Speciality Cords Limited and Dove Airlines Private Limited, have done reasonably well in the year. During the year, Usha Siam Steel Industries Public Company Limited (USSIL) has entered into a Joint Venture Agreement with Tesac Wireropes Co Limited (TWCL), Japan for setting up a new joint venture company named “Tesac Usha Wirerope Company Limited” Which shall manufacture specialty wire ropes for elevator and other applications. This new company had been incorporated under the laws of Thailand. USSIL, along with Usha Martin Singapore Pte Limited a wholly owned subsidiary of the Company, holds 50% equity in new JV, while the remaining 50% is being held by TWCL.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC OVERVIEW

 

The difficult global economic conditions continued also during financial year 2012-13. The global economic growth in calendar year 2012 reduced to 3.2% from 3.9% in 2011. While the advanced economies achieved a lower growth of 1.2% compared to 1.6% in 2011, the emerging and developing economies slowed down to 5.1% during 2012 from 6.4% in 2011. The Euro Area economy registered a negative growth of 0.6%, suggesting that the factors which posed challenges not only continued to prevail but in fact had a deeper impact in 2012 and are likely to continue in 2013 as well with estimated negative growth of 0.3%. In view of difficult conditions, The World Economic Outlook has forecasted growth in World, Advanced Economies and Emerging/Developing Economies at 3.3%, 1.2% and 5.3% respectively, in 2013 and expects recovery in 2014 with World average reaching 4.0%, though Emerging and Developing countries would still be at about 5.7%.

 

The Indian economy, which grew by 9.3% in FY ‘11 and was poised to be entering double digit, continued to drift on key economic parameters. The GDP growth declined from 6.2% in FY ’12 to 5.0%in FY ’13,lowest in several years. The Industrial growth has gone down from a low level of 3.5% in FY ’12 to 3.1% in FY’13.The Manufacturing growth came down to 1.9% from 2.7% in FY ’12 and 9.7% in FY ‘11, though Mining recovered from negative 0.6% to a small positive 0.4%.

 

The Index of Industrial Production (IIP), already down to 3.5% in FY ’12 from 8.1% in FY ’11,further slipped to 0.9% in FY ‘13, with Manufacturing sector growing merely by 1.0% against 3.7% in FY ’12 and 8.7% in FY ’11.The negative trend in Mining sector further deepened to (-) 2.5% in FY ’13 from (-)2.1% in FY ’12 and 5.8% in FY ’11.On use basis, Capital Goods segment suffered the most by slipping further to (-) 7.6% in FY ’13 from (-) 1.8% in FY ’12and 14.8% in FY ’11.

 

Higher level of fiscal deficit, expanding trade gap, deteriorating current account deficit, rising inflation and higher interest rates along with governance deficit contributed industrial slow down and worsening economic environment during FY -13.

 

COMPANY OVERVIEW

 

BUSINESS CONFIGURATION

 

Usha Martin is an integrated specialty steel and value added steel products Company, having business locations across 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) and a rolling mill at Agra (Uttar Pradesh) 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 DRI, hot metal, pig iron, sinter, oxygen and power generation, primarily for captive

consumption. The coke oven and pellet plant are in an advanced stage of construction. 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 are sold in the market to the extent of 63% and balance 37% are for inhouse production of value added products such as wire ropes, wires, strands and bright bars at Ranchi, Hoshiarpur, Chennai and Bangkok. The rolled products manufactured at Agra are sold in domestic market for use in automotive and construction sectors.

 

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, infra-structure, 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 also has 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 also provides products and solutions for oil and gas sectors for anchoring, drilling and mooring applications from it’s facilities at Aberdeen in UK.

 

The Company has an in-house machinery manufacturing facility at Ranchi to cater to captive engineering requirements as well as 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 sizeable portion of finished products, thereby de-risking both the businesses. Also it enables the Company to aspire to become truly competitive across entire chain of chosen products.

 

STEEL BUSINESS

 

Business Environment

 

The drop in Index of Industrial Production for steel from about 7.0% in FY ’12 to 2.2% in FY ’13 and for Motor Vehicles from 12.6% to (-)5.6% was significant and in line with drop in manufacturing sector to 1.0% from 3.7%. Similarly in mining sector contraction deepened from 2.1% to 2.5% in FY ’13.

 

The domestic consumption of steel has grown by 3.3%, though very low for a growing economy, but consumption of Alloy Steel has shrunk by 14.3% to 4.28 MnT in FY ’13 from 5.0 MnT in FY ’12.Within automobile, which accounts for major portion of consumption of alloy steel, the requirement of alloy steel bars and rods for MandHCV and Tractor segments have recorded a significant drop by 27.3% and 20.3% respectively in the current financial year.

 

In the circumstances it led to pressure on selling prices and consequently profitability, though partially this could be neutralized by savings due to reduction in prices of coking coal together with higher productivity and cost reduction measures adopted during the year. The entire reduction in selling price could not be neutralized through cost reductions resulting in lower margins.

 

Even under these constraints the steel business of the Company could achieve highest ever volume of steel sale, minerals and intermediary products, during the current financial year.

 

Key Achievements

 

The Company had following focus areas and achievements during the year:

 

·         Achieved highest ever volume production of hot metal, billets, rolled products, DRI and Sinter,

·         Achieved highest ever volume of mineral production i.e. iron ore and coal,

·         Reduction in use of liquid fuel by replacement with producer gas,

·         Obtained further approvals from major OEMs for bloom and bar products,

·         Continued focus on structural issues of improving equipment health, process robustness, correcting missing links, skill development and TPM, and

·         Successful commissioning of key cost optimization projects, such as :

 

- 30 MW CPP

- Char Beneficiation

- Fume Exhaust System of SMS-2

 

- 125 TPD (ASU) O2 plant

- EBNER Annealing Furnace

- Beneficiation Phase-1

- 100 TPD Lime Kiln

- Coke Oven Battery of first 48 Ovens

- DRI- V

 

OPERATIONAL HIGHLIGHTS

 

The Steel business achieved a higher sales turnover of Rs.23976.300 Millions in the current financial year against Rs.22114.100 Millions in the previous year, up by 8.4%. The operating profit and margins improved to Rs.3922.300 Millions at 16.4% during the year against Rs.2487.400 Millions at 11.2% in the previous year.

 

Share of Steel business stood at 65.7% of the Company’s gross level of activity and 54.9% of reported gross turnover in the current financial year.

 

PROJECTS

 

The cost optimization projects undertaken by the Company have progressed well and been commissioned during the year, except the following which are under advanced stage of implementation and will be commissioned in financial year 2014:

 

- Coke Oven,

- 35 MW Waste Heat based Captive Power Plant,

- DRI IV,

- Iron Ore Beneficiation Plant, and

- Pellet Plant

 

The completion of these projects would mark an important phase in achieving full value integration in steel business of the Company. As is evident from improvement in operating margins for the year as a result of benefits from some of cost saving projects, the Company would stand to further strengthen its’ cost competitiveness with implementation of these projects. The Company was allotted Lohari coal block in Jharkhand in 2005 by the Government of India. The same could not be started in stipulated time due to various reasons beyond control of the Company. Considering the submissions, the Government has allowed to start mining during 1st half of current financial year, which the Company is hopeful of achieving.

 

 

WIRE ROPES AND SPECIALITY PRODUCTS BUSINESS

 

In addition to weak business environment in general in global and domestic markets, the following factors further influenced business sentiments and performance of value added products business of the Company:

 

·         In continuance from the previous financial year, while growth momentum in advanced global economies remained subdued during the year, the crisis in Euro zone deepened further. However due to aggressive market expansion exports grew by 7.8%. Margins continued to remain under pressure due to severe competition, and

·         The devastating floods in Thailand in October 2011, which crippled business of Usha Siam in 2nd half of previous financial year, has achieved normal level of operations in later part of current financial year.

 

On standalone basis, the Wire and Wire Ropes business achieved turnover of Rs.14746.400 Millions in the current financial year against Rs.13308.200 Millions in previous year, higher by 10.8%. The operating profit and margin were Rs. 1950.600 Millions at 13.2% during the year against Rs.1848.000 Millions at 13.9% in previous year.

 

FOCUS AREAS AND NEW INITIATIVES

 

Exploring new avenues for growth in business of mining ropes.

Successfully developed and supplied large diameter Compacted ropes for Cranes.

Opening of a new RandD Centre in Italy named “Usha Martin Italia SRL” under Usha Martin International Limited a wholly owned subsidiary of the company.

Opening of a new Company in Holland named “Usha Martin Europe BV” under Usha Martin International Limited a wholly owned subsidiary of the company for distribution of wire ropes in the European market.

 

INTERNATIONAL BUSINESS

 

The Company enjoys a wide international presence through manufacturing and distribution subsidiaries located in different parts of the world.

 

The Company’s international business accounted for 17.4% of its consolidated gross activity level. Gross level of activities of overseas subsidiaries has increased 10.3% from Rs. 8708.300 Millions in 2011-12 to Rs. 9608.100 Millions in 2012-13.

 

USHA MARTIN INTERNATIONAL LIMITED [UMIL]

 

UMIL enjoys a presence in the UK and parts of Europe through its’ wholly owned subsidiaries, namely: a. Usha Martin UK Limited, which comprises manufacturing distribution and end use solutions for wire ropes to offshore oil and gas sectors, and b. De Ruiter Staalkabel B.V. Netherlands, which has distribution facilities for wire ropes. The consolidated turnover of UMIL was GBP 39.2 Mn in 2012- 13 as against GBP 43.7 Mn in 2011-12. UMIL reported a consolidated net profit of GBP 3.0 Mn as against GBP 3.6 Mn in the previous year.

 

UMIL has taken further initiatives as under:

 

·         Implementing a new project to manufacture large diameter crane rope for manufacturing in BSUK. On completion, they will be able to reach new markets for high performance crane ropes in oil / off shore sectors, in this project single reel weight will be upto 400 tons,

·         Setting up of RandD Centre in Italy, and

·         Opening of sales office in Moscow.

 

USHA MARTIN AMERICAS INC [UMAI]

 

During the year, UMAI reported a turnover and profit after tax of US$ 16.1 Mn and US$ 1.1 Mn respectively as against US$ 17.2 Mn and US$ 0.9 Mn respectively in the previous year.

 

BRUNTON WOLF WIRE ROPES FZCO [BWWR]

 

BWWR, a joint venture with Gustav Wolf of Germany, reported a turnover and profit after tax of US$ 24.3 Mn and US$ 1.2 Mn respectively in 2012-13 as against US$ 23.4 Mn and US$ 1.5Mn respectively in the previous year. Number of steps has been taken to expand further into African and Russian markets.

 

USHA SIAM STEEL INDUSTRIES PUBLIC COMPANY LIMITED [USSIL]

 

USSIL is a subsidiary of the Company which along with Usha Martin Singapore Pte Limited holds 97.85% of equity. USSIL, which was severely affected in devastating floods in Thailand in October 2011, has resumed normal operations during the current financial year.

 

The operations of USSIL, achieved a turnover of Thai Baht 1,132 Mn during the year as against Thai Baht 1,043 Mn in the previous year. It reported a net profit of Thai Baht 245 Mn including insurance claim as against Thai Baht 35 Mn in the previous year.

 

During the year, USSIL has entered into a Joint venture Agreement with Tesac Wireropes Company Limited, Japan for setting up a joint venture company named ‘Tesac Usha Wirerope Company Limited’ which shall manufacture specialty Wire ropes for Elevator and other applications. The new company has been incorporated under the laws of Thailand.

 

USHA MARTIN SINGAPORE PTE LIMITED [UMSPL]

 

UMSPL together with its wholly owned subsidiaries (Usha Martin Australia Pty Limited, Usha Martin Vietnam Company Limited and PT Usha Martin Indonesia), achieved a consolidated turnover of US$ 37.3 Mn and net profit of US$ 0.9 Mn during the year as against US$ 36.6 Mn and net profit of US$ 1.7 Mn respectively in the previous year.

 

CABLE BUSINESS

 

U M Cables Limited (UMCL), a wholly owned Indian subsidiary of the Company, engaged in business of telecommunication cables achieved turnover of Rs. 1175.000 Millions against Rs. 1091.000 Millions in the previous year. The net profit for the year doubled to Rs. 65.000 Millions as against Rs. 30.000 Millions in FY 11-12.

 

During the year, UMCL has redeemed 2% Cumulative Redeemable Non-Convertible Preference Shares of Rs.40.000 Millions held by the Company out of its profits. UMCL has acquired a plant and facility for making 350 TPD of DRI, 50,000 MT of steel billets, and Waste Heat based 5 MW Power generation for captive use, along with land at village Dugdha, Dist. Saraikela in the state of Jharkhand, in auction from Punjab National Bank and Bank of India (‘the banks’).

 

The acquisition of aforesaid plant by the banks and handing over the same to UMCL has been challenged by the erstwhile owners and others. The judicial process is pending conclusion.

 

FINANCIAL DISCUSSION

 

During the year, consolidated turnover of the Company stood at Rs. 36218.300 Millions, which is 7.8% higher than Rs. 33608.200 Millions in the previous year. On standalone basis, the Company’s turnover increased to Rs. 30445.300 Millions in the current financial year against Rs. 28368.900 Millions in the previous year, up by 7.3%. The operating profit achieved by the Company on consolidated basis was Rs. 7052.000 Millions, being 19.5% of the reported turnover against Rs. 4977.600 Millions, being 14.8% in previous year.

 

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 -
400018, INDIA

B22445860

10

10266515

25/07/2011 *

2,500,000,000.00

STATE BANK OF INDIA

CAG BRANCH, 34, CHOWRINGHEE ROAD, KOLKATA, WEST B
ENGAL - 700071, INDIA

B17355231

 

* Date of charge modification

 

CONTINGENT LIABILITIES:

 

Particulars

 

31.03.2013

(Rs. in millions)

31.03.2012

(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

197.700

46.500

Demand for Excise Duty and Service Tax

649.300

581.800

Demand for Customs Duty

8.300

57.500

Outstanding Labour Disputes

4.400

3.100

Disputed Electricity duty rebate matters which is subjudice

52.800

50.400

B) Bills discounted with Banks including against Letter of Credit

818.900

1268.200

TOTAL

1925.400

2201.500

 

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30th SEPTEMBER, 2013

Rs. In Millions

 

 

Particulars

Quarter Ended

Six Months

 

30.09.2013

30.06.2013

30.09.2013

Unaudited

Unaudited

Audited

1. Income from Operations

 

 

 

(a) Net Sales / Income from Operations (Net of excise duty)

7095.900

7399.500

14495.400

(b) Other Operating Income

0.000

0.000

0.000

Total Income from Operations (net)

7095.900

7399.500

14495.400

2. Expenses

 

 

 

a. Cost of Materials consumed

2197.300

2181.900

4379.200

b. Purchase of stock-in-trade

8.300

10.200

18.500

c. Changes in inventories of finished goods, work-in-progress, stock-in-trade and scrap

(563.900)

(364.200)

(928.100)

d. Power and Fuel

856.700

833.600

1690.300

e. Consumption of Stores and Spare Parts

520.000

610.800

1130.800

f. Employee Benefits expenses

506.700

499.900

1006.600

g. Depreciation and amortization expenses

735.100

655.800

1390.900

h. Other Expenses

1995.100

2244.800

4239.900

Total Expenses

6255.300

6672.800

12928.100

3. Profit from Operations before Other Income, Finance costs and Exceptional Items (1-2)

840.600

726.700

1567.300

4. Other Income

198.200

231.300

429.500

5. Profit from ordinary activities before Finance Costs and Exceptional Items (3 + 4)

1038.800

958.000

1996.800

6. Finance costs

1008.600

917.800

1926.400

7. Profit / (Loss) from ordinary activities after Finance Costs but before Exceptional Items (5 - 6)

30.200

40.200

70.400

8. Exceptional Items

--

--

--

9. Profit / (Loss) from Ordinary Activities before Tax (7 ± 8)

30.200

40.200

70.400

10. Tax Expense (Note 1 below)

13.200

18.200

31.400

11. Net Profit / (Loss) from Ordinary Activities after Tax (9 ± 10)

17.000

22.000

39.000

12. Extraordinary Items (net of tax expenses)

0.000

0.000

0.000

13. Net Profit / (Loss) for the period (11 ± 12 )

17.000

22.000

39.000

14. Paid-up Equity Share Capital [Face value Re.1 each]

305.400

305.400

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

0.06

0.07

0.13

Diluted

0.06

0.07

0.13

Part II

 

 

 

A. PARTICULARS OF SHAREHOLDING @

 

 

 

1. Public Shareholding - Number of Shares

157470115

159475115

157470115

- Percentage of Shareholding

51.67%

52.33%

51.67%

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

147271665

145266665

147271665

-           Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100.00%

100.00%

100.00%

-           Percentage of shares (as a % of the total share capital of the company)

48.33%

47.67%

48.33%

 

@ Including Shares held by Custodians and against which Depository Receipts have been issued.

 

Particulars

3 months ended

30.09.2013

B. INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

Nil

Received during the quarter

12

Disposed of during quarter

12

Remaining unresolved at the end of the quarter

Nil

 

NOTES:

 

·         Tax expense comprises Current Tax and Deferred Tax, net of MAT Credit Entitlement and Excess Provision of Current Tax relating to earlier years written back.

 

·         Figures for the previous periods have been reclassified where considered necessary to conform to this quarter's classification.

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Rs. In Millions

PARTICULARS

 

30.09.2013

Unaudited

Equity and liabilities

 

Shareholders' fund

 

Share capital

305.400

Reserve and surplus

15215.800

Sub-total - Shareholders' funds

15521.200

Non - current liabilities

 

Long term borrowings

22785.600

Deferred tax liability (net)

2111.200

Other long-term liabilities

4012.800

Long term provisions

288.200

Sub-total - Non-current liabilities

29197.800

Current liabilities

 

Short term borrowings

6567.00

Trade payables

13024.400

Other current liabilities

10322.300

Short term provisions

136.700

Sub-total - Current liabilities

30050.400

 

 

Total - Equity & Liabilities

74769.400

 

 

Assets

 

Non-current assets

 

Fixed assets

49530.300

Non-Current Investments

1747.800

Long term loans & advances

2534.200

Other non-current assets

0.000

Sub-total – Non-current Assets

53812.300

Current assets

 

Current Investment

500.600

Inventories

13712.800

Trade receivables

3581.800

Cash & bank balances

566.300

Short term loans & advances

1984.000

Other current assets

611.600

Sub-total - Current Assets

20957.100

 

 

Total – Assets

74769.400

 

·         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 9th November, 2013.

 

·         The Auditors of the Company have carried out a 'Limited Review' of the aforesaid financial results for the period ended 30th September, 2013 in terms of Clause 41 of the Listing Agreement with Stock Exchanges.

 

STANDALONE SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

Rs. In Millions

 

 

Particulars

Quarter Ended

Six Months

 

30.09.2013

30.06.2013

30.09.2013

Unaudited

Unaudited

Audited

1. Segment Revenue (Net Sales / Income from Operations)

 

 

 

a.         Steel

4971.400

5644.200

10615.600

b.         Wire and Wire Ropes

3800.500

3689.900

7490.400

c.         Unallocated

16.800

20.300

37.100

 

 

 

 

Total Segment Revenue

8788.700

9354.400

18143.100

 

 

 

 

Less: Inter-Segment Revenue

1692.800

1954.900

3647.700

 

 

 

 

Net Sales / Income from Operations

7095.900

7399.500

14495.400

 

 

 

 

2. Segment Results [Profit(+)/Loss(-) before tax and finance costs from each segment]

 

 

 

a.         Steel

685.500

627.300

1312.800

b.         Wire and Wire Ropes

373.300

341.400

714.700

c.         Unallocated

(9.600)

(10.300)

(19.900)

Total

1049.200

958.400

2007.600

 

 

 

 

Less:

 

 

 

a.         Finance costs

1008.600

917.800

1926.400

b.         Other Un-allocable Expenditure

(Net of Un-allocable Income)

10.400

0.400

10.800

 

 

 

 

Total Profit(+) / Loss(-) before Tax

30.200

40.200

70.400

 

 

 

 

3. Capital Employed

(Segment Assets less Segment Liabilities)

 

 

 

a.         Steel

38339.800

36920.800

38339.800

b.         Wire and Wire Ropes

9578.200

10294.600

9578.200

c.         Unallocated

1103.400

1063.900

1103.400

 

 

 

 

Total

49021.400

48279.300

49021.400

 

FIXED 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


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.102.06

Euro

1

Rs.84.31

 

 

INFORMATION DETAILS

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

43

 

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

 

--

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.