MIRA
INFORM REPORT
|
Report Date : |
21.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
RMG ALLOY STEEL LIMITED (w.e.f. 14.05.2013) |
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Formerly Known
As : |
REMI METALS GUJARAT LIMITED (w.e.f. 23.01.1993) REMI METALS LIMITED |
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Registered
Office : |
Plot No.1, G.I.D.C. Industrial Estate, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
06.10.1993 |
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Com. Reg. No.: |
04-020358 |
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Capital
Investment / Paid-up Capital : |
Rs. 1053.000
Millions |
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CIN No.: [Company Identification
No.] |
L27100GJ1993PLC020358 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR14671G |
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PAN No.: [Permanent Account No.] |
AAACR2121C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Exporter of Steel and Steel Products such as Seamless Tubes and Rolled Products. |
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No. of Employees
: |
600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (11) |
|
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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. There appears huge accumulated losses which has eroded networth of the
company. Business is active. Payment terms are 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.
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 term Bank facilities : D |
|
Rating Explanation |
Lowest credit quality and low prospects of
recovery. |
|
Date |
September 30, 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.
INFORMATION PARTED BY
|
Name : |
Mr. Ashok Bagchi |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-2645-619700 |
|
Date : |
18.01.2014 |
LOCATIONS
|
Registered Office/ Factory : |
Plot No.1, G.I.D.C. Industrial Estate, Valia Road, Jhagadia, District
Bharuch – 392001, Gujarat, India |
|
Tel. No.: |
91-2645-619700/ 220406/ 7 |
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Fax No.: |
91-2645-226841/ 619800/ 220403 |
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E-Mail : |
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Website : |
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Corporate Office : |
B-9, Trade World, Kamala City, S.B. Marg, Lower Parel, Mumbai –
400001, Maharashtra, India |
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Tel. No.: |
91-22-66136000 |
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Fax No.: |
91-22-24908020 |
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E-Mail : |
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Sales Offices : |
Located at: ·
Ahmedabad ·
New Delhi ·
Chennai ·
Bangalore ·
Kolkata ·
Nagpur |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Atul Desai |
|
Designation : |
Chairman |
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|
Name : |
Mr. Abhishek Mandawewala |
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Designation : |
Executive Director |
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Name : |
Shashank Chaturvedi |
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Designation : |
Executive Diretor |
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Name : |
Mr. Ashok Jain |
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Designation : |
Director |
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|
Name : |
Mr. Hanuman Kanodia |
|
Designation : |
Director |
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|
Name : |
Mr. V. S. Iyer |
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Designation : |
Director |
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|
Name : |
Mr. Nirmal Gangwal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ashok Bagchi |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of
Shareholder |
Total No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
94618674 |
87.26 |
|
|
1799 |
0.00 |
|
|
94616875 |
87.26 |
|
|
94618674 |
87.26 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
94618674 |
87.26 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18430 |
0.02 |
|
|
140 |
0.00 |
|
|
23761 |
0.02 |
|
|
42331 |
0.04 |
|
|
|
|
|
|
2050192 |
1.89 |
|
|
|
|
|
|
6890917 |
6.35 |
|
|
3809182 |
3.51 |
|
|
1024544 |
0.94 |
|
|
1106 |
0.00 |
|
|
23438 |
0.02 |
|
|
1000000 |
0.92 |
|
|
13774835 |
12.70 |
|
Total Public shareholding (B) |
13817166 |
12.74 |
|
Total (A)+(B) |
108435840 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
108435840 |
100.00 |
(1) Indian
Any Others (Specify)
Directors/Promoters & their Relatives
& FriendsShareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sl. No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % |
||
|
1 |
Rajendra Finance Private Limited
|
2460520 |
2.27 |
|
2 |
Bajrang Finance Limited |
10 |
0.00 |
|
3 |
Remi Securities Limited |
2313600 |
2.13 |
|
4 |
Kuber Kamal Industrial Investments Limited |
2313617 |
2.13 |
|
5 |
Calplus Trading Private Limited
|
6114390 |
5.64 |
|
6 |
Magnificent Trading Private Limited
|
7012,334 |
6.47 |
|
7 |
Remi Finance and Investment Private Limited |
2460000 |
2.27 |
|
8 |
Vishwakarma Jobworks Limited |
2556545 |
2.36 |
|
9 |
Vayudoot Trading Limited |
1995492 |
1.84 |
|
10 |
Widescreen Holdings Private Limited
|
24143333 |
22.27 |
|
11 |
Welspun Steel Limited |
43247034 |
39.88 |
|
12 |
Vishwambarlal C Saraf |
916 |
0.00 |
|
13 |
Rajendra C Saraf |
501 |
0.00 |
|
14 |
Minakshi R Saraf |
151 |
0.00 |
|
15 |
Vishwambarlal C Saraf |
230 |
0.00 |
|
16 |
Vandana V Saraf |
1 |
0.00 |
|
|
Total |
94618674 |
87.26 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Steel and Steel Products such as Seamless Tubes and Rolled Products. |
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Products/ Services : |
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Exports : |
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Products : |
Steel and Steel Products |
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Countries : |
· Europe |
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Imports : |
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Products : |
Raw Material |
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Countries : |
· China Korea Taiwan Malaysia |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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Customers : |
End Users |
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No. of Employees : |
600 (Approximately) |
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Bankers : |
· Bank of Baroda Lakshmi Vilas Bank Andhra Bank Federal Bank Corporation Bank |
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Facilities : |
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Financial Institution : |
· IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India |
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Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
Chaturvedi and Shah Chartered Accountants |
|
Address : |
Nariman Point, Mumbai – 400021, Maharashtra, India |
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Enterprise having
significant influence over the Company : |
· Welspun Steel Limited Wide Screen Holding Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
110000000 |
Equity Shares |
Rs. 6/- each |
Rs. 660.000 Millions |
|
54000000 |
Preference Shares |
Rs. 10/- each |
Rs. 540.000 Millions |
|
|
Total |
|
Rs. 1200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
108435840 |
Equity Shares |
Rs. 6/- each |
Rs. 650.600
Millions |
|
40242857 |
Preference Shares |
Rs. 10/- each |
Rs. 402.400 Millions
|
|
|
Total |
|
Rs. 1053.000 Millions |
|
a.
Reconciliation of the Number of Shares Equity Shares : Face value of Rs.10
each |
31.03.2013 |
|
|
|
Number of shares |
Rs. in Millions |
|
As at beginning of the year |
108435840 |
650.600 |
|
Share issued during the year |
-- |
-- |
|
Buyback/ forfeiture/ reduction of shares |
-- |
- |
|
-Outstanding at the end of the year |
108435840 |
650.600 |
|
|
|
|
|
Preference Share :Face value of Rs 10 each |
|
|
|
As at beginning of the year |
--- |
-- |
|
Share issued during the year |
40242857 |
402.400 |
|
Buyback/ forfeiture/ reduction of shares |
-- |
-- |
|
-Outstanding at the end of the year |
40242857 |
402.400 |
|
b. Details of Shareholders holding more than 5% of the aggregate
shares |
31.03.2013 |
|
|
Name of the Shareholders Equity Shares : |
Number of shares |
% held |
|
Welspun Steel Limited |
43247034 |
39.88 |
|
Widescreen Holding Private Limited |
24143333 |
22.27 |
|
Mangnificent Trading Private Limited |
7012334 |
6.47 |
|
Calplus Trading Private Limited |
5520481 |
5.09 |
|
|
|
|
|
12% Cumulative Redeemable Preference Shares (CRPS) : |
|
|
|
Welspun Steel Limited |
40242857 |
100.00 |
c. Terms/ rights
attached to
Equity shares :
The Company has 108,435,840
equity share having par value of Rs 6/- each fully paid up. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays
dividends, if any, in Indian rupees. The dividend proposed if any, by the board
of Directors is subject to the approval of the Shareholders in ensuing annual
general meeting.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Preference Share :
The CRPS carry
dividend (cumulative) of 12% per annum. The CRPS are redeemable with premium of
Rs.25 per share in three equal annual installments payable from the end of
eight years to ten years from 19th February 2013, the date of allotment.
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 |
1053.000 |
650.600 |
650.600 |
|
(b) Reserves & Surplus |
(1911.000) |
(1984.100) |
(1414.000) |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
150.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(708.000) |
(1333.500) |
(763.400) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1614.200 |
2106.100 |
2673.500 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
20.800 |
22.000 |
17.700 |
|
Total Non-current
Liabilities (3) |
1635.000 |
2128.100 |
2691.200 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1282.100 |
1160.300 |
863.300 |
|
(b)
Trade payables |
868.400 |
1785.000 |
1407.700 |
|
(c) Other
current liabilities |
549.100 |
844.700 |
340.200 |
|
(d) Short-term
provisions |
2.700 |
1.900 |
2.800 |
|
Total Current
Liabilities (4) |
2702.300 |
3791.900 |
2614.000 |
|
|
|
|
|
|
TOTAL |
3629.300 |
4586.500 |
4541.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1846.500 |
2066.200 |
2271.500 |
|
(ii)
Intangible Assets |
3.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
13.800 |
17.300 |
17.100 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
29.200 |
27.700 |
27.900 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1892.500 |
2111.200 |
2316.500 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
794.600 |
1064.900 |
863.200 |
|
(c)
Trade receivables |
735.200 |
1126.700 |
1104.200 |
|
(d) Cash
and cash equivalents |
171.500 |
185.200 |
124.800 |
|
(e) Short-term
loans and advances |
31.400 |
90.100 |
133.100 |
|
(f)
Other current assets |
4.100 |
8.400 |
0.000 |
|
Total
Current Assets |
1736.800 |
2475.300 |
2225.300 |
|
|
|
|
|
|
TOTAL |
3629.300 |
4586.500 |
4541.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
3541.900 |
5848.700 |
5956.400 |
|
|
|
Other Income |
26.700 |
22.500 |
17.700 |
|
|
|
TOTAL (A) |
3568.600 |
5871.200 |
5974.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2134.000 |
3958.600 |
3869.900 |
|
|
|
Changes in Inventories of Finished & Semi Finished Goods |
207.200 |
(209.200) |
43.000 |
|
|
|
Employee Benefits Expense |
251.800 |
281.600 |
275.900 |
|
|
|
Others Expenses |
1200.900 |
1766.100 |
1767.200 |
|
|
|
TOTAL (B) |
3793.900 |
5797.100 |
5956.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(225.300) |
74.100 |
18.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
485.000 |
421.500 |
312.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(710.300) |
(347.400) |
(294.100) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
222.700 |
222.700 |
231.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(933.000) |
(570.100) |
(525.400) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(933.000) |
(570.100) |
(525.400) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
(1984.100) |
(1414.000) |
(888.600) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(2917.100) |
(1984.100) |
(1414.000) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
80.600 |
184.700 |
72.400 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
355.400 |
626.000 |
182.000 |
|
|
|
Stores & Spares |
47.100 |
96.200 |
93.100 |
|
|
TOTAL IMPORTS |
402.500 |
722.200 |
275.100 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(8.65) |
(5.26) |
(4.85) |
|
Expected Sales (2013-2014): Rs. 4000.000 Millions
The above information has been parted by Mr. Ashok Bagchi (Accounts
Manager)
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1038.900 |
1096.800 |
|
Total Expenditure |
|
1051.600 |
1102.400 |
|
PBIDT (Excl OI) |
|
(12.700) |
(5.600) |
|
Other Income |
|
3.700 |
4.800 |
|
Operating Profit |
|
(9.000) |
(0.800) |
|
Interest |
|
125.500 |
138.600 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(134.500) |
(139.400) |
|
Depreciation |
|
55.600 |
55.800 |
|
Profit Before Tax |
|
(190.100) |
(195.200) |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(190.100) |
(195.200) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(190.100) |
(195.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(26.14)
|
(9.71)
|
(8.79)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(26.34)
|
(9.75)
|
(8.82)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(25.81)
|
(12.48)
|
(11.61)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.32
|
0.43 |
0.69 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(4.09)
|
(2.45)
|
(4.63)
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.64
|
0.65 |
0.85 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
|
|
|
|
|
Current maturity of long term borrowings |
333.700 |
716.200 |
209.000 |
|
|
|
|
|
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10469789 |
18/12/2013 |
50,000,000.00 |
ANDHRA BANK |
16-B, EARNEST
HOUSE, NCPA MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B92989110 |
|
2 |
10469788 |
09/12/2013 |
480,000,000.00 |
ANDHRA BANK |
16-B, EARNEST HOUSE,
NCPA MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B93362648 |
|
3 |
10471285 |
19/11/2013 |
750,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI
- 400001, MAHARASHTRA, INDIA |
B93822419 |
|
4 |
10419282 |
16/03/2013 |
1,150,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B73049314 |
|
5 |
10406620 |
28/01/2013 |
989,200,000.00 |
ANDHRA BANK |
16-B, EARNEST
HOUSE, NCPA MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B69035905 |
|
6 |
10399646 |
28/12/2012 |
294,200,000.00 |
LAKSHMI VILAS
BANK LIMITED |
BHARAT HOUSE, 104,
B.S. MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA |
B66374802 |
|
7 |
10380044 |
14/09/2012 |
100,000,000.00 |
CORPORATION BANK |
104, BHARAT
HOUSE, GROUND FLOOR, MUMBAI SAMACHAR MARG, FORT, MUMBAI - 400023,
MAHARASHTRA, INDIA |
B59499376 |
|
8 |
10369505 |
30/06/2012 |
1,352,100,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI
- 400001, MAHARASHTRA, INDIA |
B45289311 |
|
9 |
10309469 |
26/09/2011 |
100,000,000.00 |
VIJAYA BANK |
MAKER CHAMBERS-IV
REAR PORTION, 222, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B22230403 |
|
10 |
10299798 |
16/03/2013 * |
2,512,800,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B73055436 |
|
11 |
10287463 |
14/09/2012 * |
419,800,000.00 |
CORPORATION BANK |
104, BHARAT
HOUSE, GROUND FLOOR, MUMBAI SAMACHAR MARG, FORT, MUMBAI - 400023,
MAHARASHTRA, INDIA |
B59499715 |
|
12 |
10281456 |
28/03/2011 |
37,500,000.00 |
LAKSHMI VILAS
BANK LIMITED |
FORT
BRANCH:NO.64, DR.V.B.GANDHI MARG, KALAGHODA, FORT, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B10858116 |
|
13 |
10228343 |
30/03/2013 * |
5,012,800,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG., GROUND
FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA |
B73968489 |
|
14 |
10183268 |
09/07/2013 * |
900,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI
- 400001, MAHARASHTRA, INDIA |
B83786053 |
|
15 |
10183294 |
18/09/2009 |
1,750,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI
- 400001, MAHARASHTRA, INDIA |
A72189806 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Sales tax deferred loan |
267.900 |
341.600 |
|
Other loan |
0.000 |
1408.500 |
|
SHORT TERM BORROWINGS |
|
|
|
Buyers credit arrangement |
183.200 |
173.000 |
|
|
|
|
|
Total |
451.100 |
1923.100 |
OPERATIONS
Performance of
Alloy Steel and Seamless Tubes of the Company was as under:
|
Particulars |
31.03.2013 |
||
|
|
Production (Tones) |
Sales (in Qty.) |
Gross Sales (in Lacs) |
|
Steel |
54048 |
54521 |
29011 |
|
Seamless Pipes |
6445 |
6186 |
6286 |
Steel and pipe division
have not operated on full capacity in view of lack of demand in view of
recession in steel market. Automobile, construction, infrastructure sectors
have not fared well during the year which resulted into poor demand for steel.
Losses incurred by the Company have eroded working capital of the Company.
Power cost has increased due to less heat order. Given the sluggish demand and
high production cost, the pressure on the profitability is expected to
continue.
The Company
however is constantly trying to develop new grades, new customers and get their
approvals for the products of the Company from reputed manufacturers.
MANAGEMENT AND DISCUSSION ANALYSIS
INDUSTRY
STRUCTURE, SCENARIO and DEVELOPMENT
Indian steel companies
have been losing some of their sheen. Profits of many of these companies have
either fallen or remained flat in the last 10 quarters
Steel industry
growth is set to remain muted with subdued demand from consuming sectors such
as infrastructure and realty. Besides, constraints in sourcing iron ore and
restriction on mining activities will pose a major challenge for the industry.
Given the sluggish demand and high production cost, the pressure on the
profitability of steel companies is expected to continue.
The main factors
impacting growth in India are the inflationary pressure, the fiscal deficit,
lower demand from consuming sectors such as automotive, construction, capital
goods and consumer durables and the problem of capital inflow. Further, there
are delays in obtaining clearances, especially environmental clearances, land
acquisition, overdue reforms.
Iron ore mining
restrictions, high prices and inferior quality of iron ore being auctioned have
also adversely impacted the Karnataka-based sponge iron players.
Struggling
economies put the brakes on infrastructure building in the world during the
financial crisis. That slowdown is going to hurt steel sector.
Lower industrial
production and reduced investment in large scale infrastructure projects have
resulted in a marked decrease in the growth of steel demand from both the
developed and emerging markets.
It is unlikely
that steel demand will significantly improve in 2013, largely because of the
continuing economic crisis in developed countries and the structural shift in
the Chinese economy. Moderate recovery is only expected in 2014–15, although
steel demand is likely to improve faster in emerging markets.
Global steelmaking
capacity will continue to exceed demand growth in 2013 with excess capacity of
479 million tons forecast. As a result, capacity utilization is expected to
remain below 80% in 2013 to limit the amount of excess supply in the market.
Margins will continue to be tight into 2013 as steel prices will remain flat
and costs are unlikely to decrease significantly in 2013. From 2014, the demand
outlook will improve modestly resulting in modest increases in capacity
utilization and steel prices.
Global steel
prices are expected to remain flat in 2013 as supply continues to outstrip
demand due to the failure of producers worldwide to shut down excess production
capacity. China continues to struggle with overcapacity and sluggish demand.
Reforms announced by the Government will provide a fillip to growth in the
economy. Huge investments planned in infrastructure-Railways, Seaports,
Airports, Highways, Bridges, etc. if made, will boost demand for steel. With
the general expectation of modest growth globally and sustained raw material
prices, steel prices are expected to be firm up and be stable in the year
ahead.
The formation of
the Cabinet Committee on Infrastructure for single window clearance for mega
projects will generate activity in the power and road sectors which would push
up steel demand.
In addition,
lowering of interest rates by Reserve Bank of India will provide impetus to the
manufacturing and consumer durables sectors.
The full impact of
all these will be felt in 2013-14.
The United States’
economy showing signs of growth in the long-term augurs well for steel makers.
This is because the US is the largest importer of steel. Industry watchers also
expect a modest two-and-a-half per cent growth in Europe, against the backdrop
of negative growth this year.
At the same time,
demand for finished products such as cold rolled, galvanised and automotive
steels is expected to go up.
After several
months of range-bound movement, prices of steel products have started inching
up gradually in the Indian markets, amid expectations of resurgence in
construction demand after the winter season. The market is mirroring the global
trend, where steel prices are continuously rising due to higher cost of
production on an upsurge in input cost.
India is poised to
become the world’s second largest steel producer. However, this is subject to
companies finding the right technology to produce special categories of steel.
Currently, with 74 million tones annual production in 2011, India is the fourth
largest producer. Per capita steel consumption went up to 59 kg in 2011-12,
from 34 kg in 2004-05. Per capita steel consumption in Rural India is very low
– about 10 kgs and as such there is abundant scope for increase in demand.
Monsoons have improved, augurs well for the economy.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Capital commitments not provided for (net of advances) |
2.300 |
2.300 |
|
Bank guarantees |
110.400 |
135.400 |
|
Bills discounted |
117.700 |
230.100 |
|
Service tax |
11.900 |
13.000 |
|
Excise duty |
3.400 |
3.400 |
|
Disputed sales tax demands |
4.900 |
4.400 |
|
Disputed Income tax demand |
8.600 |
8.600 |
|
Claim against the Company not acknowledged as debts |
7.300 |
7.300 |
|
Dividend on cumulative redeemable preference shares (CRPS) |
5.400 |
0.000 |
|
Total |
271.900 |
404.500 |
FIXED ASSETS:
TANGIBLE ASSETS
·
Leasehold
Land
·
Freehold
Land
·
Plant
and Machinery
·
Electrical
Installation
·
Buildings
·
Office
Equipments
·
Furniture
and Fixtures
·
Vehicles
INTANGIBLE ASSETS:
· Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.63 |
|
|
1 |
Rs. 101.25 |
|
Euro |
1 |
Rs. 83.42 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
1 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
11 |
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.