MIRA
INFORM REPORT
|
Report Date : |
15.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZENITH BIRLA (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point,
Mumbai – 400 021, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
05.08.1960 |
|
|
|
|
Com. Reg. No.: |
11-011773 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1312.804
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29220MH1960PLC011773 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and
Seller of steel pipes which includes ERW pipes, hollow sections,
pre-galvanized pipes and sections, and spirally welded pipes. |
|
|
|
|
No. of Employees
: |
Information declined by the Management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (14) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. There appears some dip in the turnover of the company’s current year. The
company has also incurred huge loss. Further the rating takes into consideration the ongoing delays in
interest servicing and frequent instances of LC development by Zenith Birla
(India) Limited. However, business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and
secured 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 |
Long/ Short Term Bank Facilities: D |
|
Rating Explanation |
The company is in default or expected to be in default soon. |
|
Date |
June 26, 2013 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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. Vimal Dubey |
|
Designation : |
Company Secretary |
|
Contact No.: |
91-22-22821122 |
|
Date : |
10.01.2013 |
LOCATIONS
|
Registered Office : |
1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point,
Mumbai – 400 021, Maharashtra, India |
|
Tel. No.: |
91-22-22821122/ 66168400/ 22821173 |
|
Mobile No.: |
91-9702020708/ 9987095114 (Mr. KVS Kumar) |
|
Fax No.: |
91-22-22047835/ 67933111 |
|
E-Mail : |
suresh.shenoy@yashbirlagroup.com
For Export Enquiries: exports@zenithsteelpipes.com For Domestic Enquiries: isc@zenithsteelpipes.com For Spiral Pipe Enquiries: spiral@zenithsteelpipes.com |
|
Website : |
|
|
Area |
10000 sq. ft. |
|
Location |
Owned |
|
|
|
|
Head Office/ Corporate Office : |
Vedant Commercial Complex, Building No. S–2, 2nd Floor, Vartak
Nagar, Pokhran Road No.1, Thane (West) – 400 606, Maharashtra, India |
|
Tel. No.: |
91-22-67933059/ 67933047/ 67933000 |
|
Fax No.: |
91-22-67933111/ 67933113 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Khopoli Unit: Taluka Khopali, District Raigad – 410 203, Maharashtra, India |
|
Tel. No.: |
91-2192-263321/22 |
|
Fax No.: |
91-2192-262471 |
|
|
|
|
Factory 2 : |
Murbad Unit: Survey (Gut) No.440/441, Village Nhave, Taluka Murbad, District Thane,
Maharashtra, India |
|
|
|
|
Factory 3 : |
Tarapur Unit: G-38/39, Tarapur Industrial Area, Village Saravali, Taluka Palgar,
District Thane – 401 506, Maharashtra, India |
|
|
|
|
Factory 4 : |
Kanchi Puram Unit Survey No.99-3A
to 3J, Padalam Sugar Mill Road, Village: Kalugar, Thogainmalai, Village
Kolambakkam, Taluka Madhuranthagam, District Kanchipuram – 603 308,
Tamilnadu, India |
|
|
|
|
Factory 5 : |
Trichy Unit SH No.71, Survey No.782, Village Kalugar Thogainmalai, Taluka
Kulithalai, District Karur – 639 120, Tamilnadu, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Yashovardhan Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. M.S. Arora |
|
Designation : |
Managing Director (resigned w.e.f. 24.07.2013) |
|
|
|
|
Name : |
Mr. Augustine P. Kurias |
|
Designation : |
Independent Director |
|
Date of Birth/
Age : |
28.08.1932 |
|
Qualification : |
M.A. (Eco), C.A.I.I.B |
|
Expertise in specific functional area : |
Shri A.P.
Kurias, aged 79 years is M.A. (Eco), C.A.I.I.B by qualification. He is a
retired banker with more than 40 years of experience in banking industry. He
has worked with RBI, IDBI in various capacities including CGM and Principal
of Bankers Training College of RBI. He has also served on Board of various
public sector banks and financial institutions. |
|
Date of
Appointment : |
27.10.1999 |
|
Directorship held in other companies : |
Birla Precision Technologies
Limited |
|
|
|
|
Name : |
Mr. Pushkar M. Natu |
|
Designation : |
Executive and Non-Independent Director (appointed w.e.f. 24.07.2013) |
|
Date of Birth/
Age : |
12.11.1961 |
|
Qualification : |
B.Com, M.B.A. |
|
Expertise in specific functional area : |
Shri Pushkar
Natu, aged 51 years is a B.Com and M.B.A.,. He is having 17 years of
experience in the field of marketing, export and general management. |
|
Date of
Appointment : |
24.07.2013 |
|
Directorship held in other companies : |
Zenith (U.S.A.) Inc. |
|
|
|
|
Name : |
Mr. Jignesh Bipin Mehta |
|
Designation : |
Independent Director) appointed w.e.f. 14.08.2013 |
|
Date of Birth/
Age : |
11.01.1967 |
|
Qualification : |
B.com |
|
Expertise in specific functional area : |
Shri jignesh
Mehta, aged 46 years is a B.Com by qualification. He is having 15 Years of
experience in the field of Liaisoning with several departments in Central Government and state Government. |
|
Date of Appointment
: |
14.08.2013 |
|
Directorship held in other companies : |
·
Birla Power Solutions Limited ·
Birla Research and Life Sciences Limited ·
Birla Edutech Limited ·
Birla Cotsyn Limited |
|
|
|
|
Name : |
Mr. P.V.R. Murthy |
|
Designation : |
Non-Executive and Non-Independent Director (resigned w.e.f.
14.08.2013) |
|
|
|
|
Name : |
Mr. D.V. Kapur |
|
Designation : |
Independent Director (resigned w.e.f. 24.07.2013) |
|
|
|
|
Name : |
Mr. Anoj Menon |
|
Designation : |
Independent Director (resigned w.e.f. 27.05.2013) |
KEY EXECUTIVES
|
Name : |
Mr. Vimal Prakash Dubey |
|
Designation : |
Company Secretary and Compliance Officer (Appointed
w.e.f. 18.06.2013) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
106018 |
0.08 |
|
|
9527185 |
7.26 |
|
|
9633203 |
7.34 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
9633203 |
7.34 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3665 |
0.00 |
|
|
426367 |
0.32 |
|
|
17 |
0.00 |
|
|
3074910 |
2.34 |
|
|
3504959 |
2.67 |
|
|
|
|
|
|
25895445 |
19.73 |
|
|
|
|
|
|
26101643 |
19.88 |
|
|
60070259 |
45.76 |
|
|
6074939 |
4.63 |
|
|
89154 |
0.07 |
|
|
1429 |
0.00 |
|
|
1858444 |
1.42 |
|
|
4125912 |
3.14 |
|
|
118142286 |
89.99 |
|
Total Public shareholding (B) |
121647245 |
92.66 |
|
Total (A)+(B) |
131280448 |
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) |
131280448 |
0.00 |
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(1) Indian%20LIMITED%20-%20250195%2015-Jan-2014_files/image003.gif){kind=small}
Individuals / Hindu Undivided Family%20LIMITED%20-%20250195%2015-Jan-2014_files/image004.gif){kind=small}
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Seller of steel pipes which includes ERW pipes, hollow sections,
pre-galvanized pipes and sections, and spirally welded pipes. |
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|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity (Per Annum) (*) |
Production |
|
Steel Pipes |
Tonnes |
210000 |
107782 |
|
|
|
|
|
(*) As Certified by the Technical Personnel and being technical matter,
accepted as correct by Auditors.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the Management |
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Bankers : |
· State Bank of India, Thane Branch, Maharashtra, India · Punjab National Bank · Bank of Baroda · Oriental Bank of Commerce · Bank of India · The Shamrao Vithal Co-operative Bank Limited · Axis Bank Limited |
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Facilities : |
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Notes: LONG TERM BORROWINGS Terms of Borrowing: (Rs.
in millions)
SHORT TERM BORROWINGS ·
Loans repayable on demand from Banks are secured by
hypothecation of inventories and /or book debts and export incentives
recoverable etc. and collaterally secured by way of first charge on the fixed
assets. ·
Foreign Currency Loan- Buyers Credit is secured by
first charge on the assets purchased from the loan. |
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|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Thakur, Vaidyanath Aiyar and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Subsidiary : |
·
Zenith (USA) Inc.(Wholly owned) ·
Zenith Middle East FZE (Wholly owned) |
|
|
|
|
Enterprises Owned or significantly influenced by
key management personnel or their relatives where transactions have taken
place : |
·
Birla Precision Technologies Limited ·
Birla Power Solutions Limited ·
Ashok Birla Apollo Hospital Private Limited ·
Birla Bombay Private Limited ·
Birla Cotsyn (India) Limited ·
Godavari Corporation Private Limited ·
Shearson Investment and Trading Co. Private
Limited ·
Birla Viking Travels Limited ·
Birla Shloka Edutech Limited ·
BirlaBrother Private Limited ·
Birla Art Lifestyle Private Limited ·
Birla Wellness and Healthcare Private Limited ·
Abhiram Steels Private Limited ·
Abhiram Hotels and Resorts Private Limited ·
Asian Distributors Private Limited ·
Melstar Information Technologies Limited ·
Birla Aircon Engineering Services Private Limited ·
Vijay Puraanjay Minerals Private Limited ·
Birla Kerala Vaidyashala Private Limited ·
Birla Terrajoule Private Limited ·
Birla Surya Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
155500000 |
Equity Shares |
Rs.10/- each |
Rs.1555.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
131280448 |
Equity Shares |
Rs.10/- each |
Rs.1312.804
millions |
|
|
|
|
|
The reconciliation of the number of shares outstanding is set out below:
|
Particulars |
No.
of Shares |
|
Shares outstanding at the beginning of the year |
131280448 |
|
Shares outstanding at the end of the year |
131280448 |
The details of Shareholders holding more than 5% share:
|
Particulars |
No.
of Share |
%
held |
|
Bank of New York Mellon |
10382472 |
7.91 |
|
Focus Shares and Securities Private Limited |
7500000 |
5.71 |
|
Shearson Investment Trading Company Private Limited |
2481193 |
1.89 |
|
Godavari Corporation Private Limited |
1354632 |
1.03 |
|
21620529 |
Equity Shares out
of the Issued, Subscribed and Paid up Share capital were allotted as Bonus
Share in the last five years by capitalisation of Securities Premium and
Reserves. |
|
13670315 |
Equity Shares
out of the Issued, Subscribed and Paid up Share capital were allotted during
the last five years pursuant to a scheme of amalgamation without payment
being received in cash. |
|
55917060 |
Equity Shares
out of the Issued, Subscribed and Paid up Share capital were allotted in the
last five years on conversion/exercise of warrants and against Global
Depository Receipts. |
On 10.01.2011 the
Company issued 10810000 Convertible Equity Share Warrants which were
convertible into 1 Equity Share of Rs.10 each at a price calculated in accordance
with SEBI regulation. 25% of the issue price was payable at the time of
allotment of warrants and the balance 75% at the time of allotment of Equity
Shares. On 25.03.2011, 1560000 warrants were converted into Equity Shares. The
remaining 9250000 warrants were convertible into Equity Share before
09.07.2012. The company is taking steps to seek extension for conversion of
warrants.
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 |
1312.804 |
1312.804 |
1312.804 |
|
(b) Reserves & Surplus |
1242.904 |
1689.918 |
1674.547 |
|
(c) Money received against share warrants |
49.488 |
49.488 |
49.488 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2605.196 |
3052.210 |
3036.839 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
283.942 |
474.130 |
571.748 |
|
(b) Deferred tax liabilities (Net) |
50.486 |
50.486 |
44.533 |
|
(c) Other long
term liabilities |
91.273 |
89.992 |
90.077 |
|
(d) Long-term
provisions |
96.126 |
97.075 |
99.130 |
|
Total Non-current
Liabilities (3) |
521.827 |
711.683 |
805.488 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1759.420 |
877.225 |
535.797 |
|
(b)
Trade payables |
1476.716 |
1987.606 |
1879.669 |
|
(c)
Other current liabilities |
655.726 |
341.848 |
233.030 |
|
(d) Short-term
provisions |
382.711 |
243.248 |
253.832 |
|
Total Current
Liabilities (4) |
4274.573 |
3449.927 |
2902.328 |
|
|
|
|
|
|
TOTAL |
7401.596 |
7213.820 |
6744.655 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1082.817 |
907.484 |
946.552 |
|
(ii) Intangible
Assets |
1.293 |
1.724 |
0.000 |
|
(iii)
Capital work-in-progress |
201.560 |
351.158 |
144.132 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
26.449 |
26.449 |
26.449 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
440.386 |
416.936 |
285.222 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1752.505 |
1703.751 |
1402.355 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
10.000 |
|
(b)
Inventories |
1096.335 |
1319.166 |
1613.701 |
|
(c)
Trade receivables |
585.416 |
834.779 |
351.976 |
|
(d) Cash
and cash equivalents |
912.208 |
934.921 |
838.816 |
|
(e)
Short-term loans and advances |
3055.132 |
2421.203 |
2527.807 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
5649.091 |
5510.069 |
5342.300 |
|
|
|
|
|
|
TOTAL |
7401.596 |
7213.820 |
6744.655 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue From Operations (Net) |
2731.576 |
4613.643 |
4943.020 |
|
|
|
Other Income |
194.416 |
228.540 |
164.832 |
|
|
|
TOTAL (A) |
2925.992 |
4842.183 |
5107.852 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
1514.988 |
2824.519 |
3717.697 |
|
|
|
Purchase of Stock in Trade |
896.859 |
797.636 |
270.107 |
|
|
|
Changes in
Inventories of Finished Goods Work-in-Progress and Stock-in-Trade |
79.440 |
104.130 |
(236.350) |
|
|
|
Employee Benefits expenses |
159.895 |
156.737 |
168.717 |
|
|
|
Other Expenses |
316.028 |
565.506 |
750.487 |
|
|
|
TOTAL (B) |
2967.210 |
4448.528 |
4670.658 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(41.218) |
393.655 |
437.194 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
350.457 |
316.436 |
238.227 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(391.675) |
77.219 |
198.967 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
54.883 |
50.817 |
47.306 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(446.558) |
26.402 |
151.661 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.356 |
11.031 |
42.819 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(446.914) |
15.371 |
108.842 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of exports |
359.193 |
1518.801 |
2508.039 |
|
|
TOTAL EARNINGS |
359.193 |
1518.801 |
2508.039 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material (Including Canalized items) |
1.007 |
119.138 |
448.747 |
|
|
|
Spare parts |
34.342 |
0.368 |
0.403 |
|
|
TOTAL IMPORTS |
35.349 |
119.506 |
449.150 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(3.40) |
0.12 |
0.83 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(15.27)
|
0.32 |
2.13
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(16.35)
|
0.57 |
3.07
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.23)
|
0.39 |
2.31
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.17)
|
0.01 |
0.05
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.78
|
0.44 |
0.36
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.32
|
1.60 |
1.84
|
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
CHARGES:
|
ENTITY |
COMPETENT
AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
Zenith Birla (India) Limited |
CDSL |
High Pending Demat Requests |
01.07.2012 |
Not appearing in the list dated 16.07.2012 |
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM BORROWINGS |
|
|
|
Deferred Payment Liabilities |
15.000 |
15.000 |
|
Deposits |
104.811 |
223.077 |
|
SHORT TERM BORROWINGS |
|
|
|
Loans and Advances from related parties |
0.226 |
94.187 |
|
Total
|
120.037 |
332.264 |
FINANCIAL
HIGHLIGHTS
During the year,
the net income of the Company has reduced to Rs.2925.992 millions as compared to
Rs.4842.183 millions of previous year due to decline in sales. Loss after Tax
for the financial year stood at Rs.446.914 millions as against the profit of
Rs.15.371 millions of previous year.
EXPORT PERFORMANCE
Exports turnover
reduced to Rs.359.153 millions for the year ended 31st March, 2013
as compared to Rs.1518.801 millions of previous year.
EXPANSION PROJECT
The Company has set up Spiral saw Mill near Trichi and execution of
orders from L&T taken up.
MANAGEMENT’S
DISCUSSION AND ANALYSIS REPORT
GLOBAL ECONOMY
The global
economic environment deteriorated in the second half of 2012 with concerns over
fiscal sustainability in Europe, and increased risk aversion around the world.
Hardening credit constraints and risk aversion have transferred financial
sector difficulties to the real economy. For developing countries in general,
the contagion has been broad-based, with higher funding costs and sharply
weakened capital flows, although that does not yet seem to have affected India.
Global economic conditions are fragile, and there remains great uncertainty as
to how markets will evolve over the medium term.
INDIAN ECONOMY
In India, the
slowdown in GDP growth witnessed over the last two quarters is likely to extend
into the coming fiscal year because of the weakness in investment. In FY
2012-13 and FY 2013-14, GDP growth is forecast to reach around 4.5-5.5 percent,
as significant slowdown from the 7.5-8 percent growth in the run-up to the
global financial crisis. The slowdown is at least partly caused by structural
problems (power projects facing delays due to the lack of coal and gas
feedstock, mining and the telecom sectors hit by corruption scandals,
unavailability of land and infrastructure). Tighter macroeconomic policies,
slow growth in the core OECD (Organization for Economic Co-operation and
Development) countries and worries in core sector.
INDUSTRY STRUCTURE
The pipe industry
is an important part of manufacturing sector and is a major consumer of steel.
The industry has benefited from economic growth and the increasing emphasis on
infrastructure. The key economic driver for the industry includes water,
infrastructure, oil and gas exploration, transportation and power industry.
Today, pipes are
the most preferred mode of transport for liquids and gases globally as they are
safe and economical. In comparison to rail and roads, they have lower operating
cost per unit and also higher capacity.
India has become
the global pipe manufacturing hub primarily due to its lower cost, high quality
and geographical advantages.
Additionally,
Indian companies have acquired global accreditations and certifications which
make them preferred suppliers to most of the world’s top oil and gas companies
in the Middle East, North America and Europe.
OUTLOOK:
Considering the
business model the Company had pursued in the past for exports and domestic,
the future model is being adjusted to overcome the threat of Anti-dumping and
CVD imposed by the USA and the loss of business due to the same in USA.
As one of the petitioners
has filed a case against order of ITC, USA, as stated above, many customers are
shy of doing the trade with their Company till the disposal of the petition.
More aggressive approach
in domestic market supported by good domestic economic growth, backed by well
established brand image, global reach and focused approach, the Company is
hopeful that the demand for the Companies steel pipes will continue to grow in
future.
Company is also
aggressively pursuing the plan to move up in the value chain by
diversifying/expanding into locations and additional product range. The Company
is also in the process of further improvising its performance by achieving
organic and inorganic growth.
FINANCIAL
PERFORMANCE:
During the year,
the net income of the Company has reduced to Rs.2925.992 millions as compared
to Rs.4842.183 millions of previous year due to decline in sales on account of
the various factors enumerated above including the levy of anti dumping duty by
USA which has affected the exports drastically. This loss of revenue also
affected the cash flow of the Company resulting into overdrawal of the limits
sanctioned by banks to the Company temporarily. The Company is working on the way
and means to regularize the overdraft with the co-operation and consensus of
the bankers. Loss after Tax for the financial year stood at Rs.446.914 millions
as against profit of Rs.15.371 millions of previous year.
CONTINGENT
LIABILITIES AND COMMITMENTS (TO THE EXTEND NOT PROVIDED FOR):
|
Particulars |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
1. Guarantees given by the Bank on behalf of the Company |
272.017 |
397.360 |
|
2. Estimated amount
of Contracts remaining to be executed on Capital Account and not provided for
(net of advances) |
337.223 |
415.143 |
|
Total
|
609.240 |
812.503 |
FIXED ASSETS:
Tangible Assets
o
Own Assets:
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant and Equipment
·
Furniture, Fixtures
·
Vehicles
·
Office Equipments
·
Computer
o
Leased Assets:
·
Improvement on Leasehold Premises
Intangible Assets
·
Computer Software
WEBSITE DETAILS:
Company Profile:
Subject was incorporated in the year 1960. Their Steel Pipes Division is
located at Khopoli which went into production in a record time of eighteen
months. This Division ranks as one of the pioneers amongst Steel Pipe
manufacturers of India. Till 1971, Zenith manufactured Steel Pipes by ERW
process. Thereafter, the manufacturing Process was converted to the imported
technology of High Frequency Induction Welding (HFIW) process.
The company has been pioneers in the Export of steel pipes, Tubes, Square and Rectangular
Hollow Sections from India. The Company’s first export was done in the year
1964 and since then has been consistently exporting its products to leading
markets like USA, Europe, Middle East, Africa etc.
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.61.52 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.84.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
- |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
14 |
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.