MIRA
INFORM REPORT
|
Report Date : |
23.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHRI BAJRANG ALLOYS LIMITED |
|
|
|
|
Registered
Office : |
521/C, Urla Industrial Complex, Raipur – 493221, Chhattisgarh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
16.08.1990 |
|
|
|
|
Com. Reg. No.: |
005964 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.90.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27103CT1990PLC005964 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a moderate track record. There appears sharp dip in profitability of the company during the
finanacial year 2013. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some caution. |
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 |
CRISIL |
|
Rating |
Long term rating: “B+” |
|
Rating Explanation |
Have high risk of default |
|
Date |
10.07.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A4” |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk. |
|
Date |
10.07.2013 |
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 DECLINED BY
|
Name : |
Mr. Baleshwar Rao |
|
Designation : |
Accounts executive |
|
Contact No.: |
91-771-4288088 |
|
Date : |
22.01.2014 |
LOCATIONS
|
Registered Office/ Factory : |
521/C, Urla Industrial Complex, Raipur – 493221, Chhattisgarh, India |
|
Tel. No.: |
91-771-2324281/ 2324282/ 4288000/ 2323628 |
|
Fax No.: |
91-771-2323629/ 4288001 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Suresh Goel |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Anand Goel |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Narendra Goel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vikash Kumar Khedia |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Dinesh Agrawal |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Raj Kumar Yadava |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh Kapadi |
|
Designation : |
HOF |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1452069 |
16.13 |
|
|
3958900 |
43.99 |
|
|
3958900 |
43.99 |
|
|
5410969 |
60.12 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5410969 |
60.12 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
1366487 |
15.18 |
|
|
|
|
|
|
1110263 |
12.34 |
|
|
1107235 |
12.30 |
|
|
5046 |
0.06 |
|
|
3461 |
0.04 |
|
|
1585 |
0.02 |
|
|
3589031 |
39.88 |
|
Total Public shareholding (B) |
3589031 |
39.88 |
|
Total (A)+(B) |
9000000 |
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) |
9000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc. |
||||
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|
||||
|
Products : |
|
GENERAL INFORMATION
|
Customers : |
· Hindustan Construction Company Limited Reliance Industries Limited Thyssenkrupp Industries India Private Limited Siemens Limited Shree Renuka Sugars Limited Afcons Infrastructure Industries Limited Gammon India Limited KEC International Limited Jyoti Structures Limited Adani Group L and T Limited Soma Enterprises Limited Hindalco Industries Limited |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||
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|
|||||||||||||||||||||
|
Bankers : |
Bank of Baroda, Raipur, Chhattisgarh,
India |
|||||||||||||||||||||
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|
|
|||||||||||||||||||||
|
Facilities : |
NOTE : LONG TERM BORROWING There is no default, continuing or otherwise, as at the balance
sheet date, in repayment of any of the above loans. SHORT TERM
BORROWING There is no default, as at the balance
sheet date, in repayment of any of above Loans. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
R K Singhania and Associates Chartered Accountants |
|
Address : |
205, 1st Floor, Samta Colony, Raipur – 492
001, Chhattisgarh, India |
|
Tel. No.: |
91-771-2255744-45/ 4036066 |
|
Fax No.: |
91-771-2254188 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Legal Advisor : |
V.K. Munshi and Associates |
|
|
|
|
Wholly owned Subsidiary : |
Popular Mercantile Private Limited |
|
|
|
|
Associate : |
· Shri Bajrang Power and Ispat Limited Shri Bajarang Ispat and Plywood Limited Shri Bajrang Hydro Energy Private Limited S.B. Multimedia Private Limited Shimmer Investments Private Limited Swastik Mercantiles Limited Jainarayan Hari Ram Goel Charitable Trust |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
1000000 |
Preference Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 210.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each
|
Rs.90.000
millions |
|
|
|
|
|
Note:
Reconciliation of
number of equity shares outstanding at the beginning and at the end of the
year.
|
PARTICULARS |
AS AT 31.03.2013 |
|
No of shares outstanding as at the beginning of
the year |
9000000 |
|
Add : Number of shares allotted during the year
as fully paid-up |
-- |
|
Number of shares outstanding as at the end
of the year |
9000000 |
Rights, preferences and restrictions
attaching to various classes of shares
|
SL No. |
Class of shares |
Rights, preferences and restrictions
(including restrictions on distribution of dividends and repayment
of capital) attached to the class of shares. |
|
1 |
Equity Shares |
Holder of Equity Share has one Vote per
share. |
|
2 |
Preference shares |
Not Issued |
Shares in the company held by
each shareholder holding more than 5% shares
|
SL No. |
Name of the
shareholder |
As at 31.03.2013 |
|
|
|
No. of shares |
% Held |
|
|
1 |
Rajendra Goel * |
847500 |
9.42 |
|
2 |
Atlanta Securities Private Limited |
760500 |
8.45 |
|
3 |
Narendra Goel * |
632700 |
7.03 |
|
4 |
Hariram Goel * |
566100 |
6.29 |
|
5 |
Anand Goel * |
513400 |
5.70 |
|
6 |
Suresh Goel * |
482400 |
5.36 |
* Hold as in capacity of Karta of HUF
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 |
90.000 |
90.000 |
90.000 |
|
(b) Reserves & Surplus |
161.850 |
147.816 |
126.463 |
|
(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) |
251.850 |
237.816 |
216.463 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
276.325 |
35.368 |
42.186 |
|
(b) Deferred tax liabilities (Net) |
4.403 |
4.775 |
4.192 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
1.397 |
1.129 |
1.781 |
|
Total Non-current Liabilities (3) |
282.125 |
41.272 |
48.159 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
290.007 |
284.864 |
242.542 |
|
(b) Trade payables |
4.519 |
6.746 |
11.836 |
|
(c) Other current
liabilities |
54.465 |
49.644 |
27.367 |
|
(d) Short-term provisions |
8.179 |
10.061 |
10.465 |
|
Total Current Liabilities (4) |
357.170 |
351.315 |
292.210 |
|
|
|
|
|
|
TOTAL |
891.145 |
630.403 |
556.832 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
49.047 |
54.559 |
51.298 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
18.520 |
15.010 |
14.564 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
217.641 |
3.145 |
2.969 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
285.208 |
72.714 |
68.831 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
213.206 |
262.041 |
255.579 |
|
(c) Trade receivables |
293.260 |
192.341 |
187.413 |
|
(d) Cash and cash
equivalents |
30.846 |
0.663 |
0.978 |
|
(e) Short-term loans and
advances |
68.625 |
102.644 |
44.031 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
605.937 |
557.689 |
488.001 |
|
|
|
|
|
|
TOTAL |
891.145 |
630.403 |
556.832 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1297.731 |
1560.165 |
1609.827 |
|
|
|
Other Income |
0.894 |
1.606 |
1.503 |
|
|
|
TOTAL (A) |
1298.625 |
1561.771 |
1611.330 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1027.371 |
1283.302 |
1257.298 |
|
|
|
Purchase of Stock in Trade |
15.455 |
36.778 |
94.520 |
|
|
|
Changes In Inventories |
47.501 |
7.518 |
20.920 |
|
|
|
Employees benefit Expenses |
9.800 |
8.603 |
8.000 |
|
|
|
Other Manufacturing Expenses |
68.460 |
83.593 |
84.041 |
|
|
|
Other Administrative Expenses |
60.751 |
65.204 |
68.658 |
|
|
|
TOTAL (B) |
1229.338 |
1484.998 |
1533.437 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
69.287 |
76.773 |
77.893 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
38.695 |
36.835 |
38.550 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
30.592 |
39.938 |
39.343 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
9.855 |
8.955 |
8.144 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
20.737 |
30.983 |
31.199 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6.704 |
9.630 |
10.110 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
14.033 |
21.353 |
21.089 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
84.257 |
72.904 |
61.815 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10.000 |
10.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
88.290 |
84.257 |
72.904 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
0.000 |
8.671 |
4.765 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.56 |
2.37 |
2.34 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2013 |
30.06.2013 |
|
Type |
|
1st
Quarter |
2nd Quarter |
|
Net Sales |
|
296.300 |
209.200 |
|
Total Expenditure |
|
283.600 |
192.800 |
|
PBIDT (Excl OI) |
|
12.700 |
16.400 |
|
Other Income |
|
0.000 |
0.000 |
|
Operating Profit |
|
12.700 |
16.400 |
|
Interest |
|
6.300 |
11.100 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
6.400 |
5.300 |
|
Depreciation |
|
2.200 |
2.300 |
|
Profit Before Tax |
|
4.300 |
3.000 |
|
Tax |
|
1.400 |
1.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
2.900 |
2.100 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
2.900 |
2.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.08
|
1.37
|
1.31 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.60
|
1.99
|
1.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.38
|
5.03
|
5.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.13
|
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.25
|
1.35
|
1.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.59
|
1.67 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
Yes |
|
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 |
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 |
10357380 |
20/04/2012 |
60,000,000.00 |
BANK OF BARODA |
MID CORPORATE BRANCH, 1ST FLOOR, K.K. ROAD, MAHAV |
B40220584 |
|
2 |
10301928 |
25/06/2011 |
80,000,000.00 |
RELIANCE CAPITAL LIMITED |
"H" BLOCK 1ST FLOOR, DHIRUBHAI AMBANI KNOWLEDGE CITY,
KOPARKHAIRNE, NAVI MUMBAI - 400710, MAHARASHTRA, INDIA |
B18624114 |
|
3 |
10039900 |
18/10/2008 * |
1,243,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, MAIN BRANCH, K. K. ROAD, RAIPUR - 492001,
CHHATTISGARH, INDIA |
A52168622 |
|
4 |
10042964 |
15/12/2007 * |
429,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, SECTOR 1, BHILAI - 490001, CHHATTISGARH, INDIA |
A37869419 |
|
5 |
10010048 |
12/07/2011 * |
340,000,000.00 |
STATE BANK F INDIA |
COMMERCIAL BRANCH, SECTOR 1, BHILAI - 490001, CHHATTISGARH, INDIA |
B17662685 |
|
6 |
90204285 |
24/09/2007 * |
10,000,000.00 |
BANK OF BARODA |
RAIPUR MAIN BRANCH, MAHAVIR GOUSHALA COMPLEX, K. K. ROAD, RAIPUR -
492001, CHHATTISGARH, INDIA |
A30978316 |
|
7 |
90202004 |
27/11/2010 * |
400,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, FIRST FLOOR, MAHAVIR GOUSHALA COMPLEX,
FAFADIH, RAIPUR - 492001, CHHATTISGARH, INDIA |
B03097656 |
|
8 |
90203655 |
12/02/2013 * |
350,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, FIRST FLOOR, MAHAVIR GOUSHALA COMPLEX,
FAFADIH, RAIPUR - 492001, CHHATTISGARH, INDIA |
B72377880 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Loans and Advances from
Related Parties From Directors and their Relatives ** |
11.978 |
7.398 |
|
Loans and Advances from
others |
|
|
|
From Corporate Bodies |
2.246 |
27.635 |
|
From Financial Institutions and Banks |
260.046 |
0.000 |
|
Total |
274.270 |
35.033 |
|
Note **As clarified by management all above mentioned Unsecured loan treated as Long term. |
||
COMPANY OVERVIEW
Subject is one of the leading manufacturing company of Raipur. Company is engaged in manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
ECONOMIC AND
INDUSTRY OVERVIEW
Indian steel industry plays a significant role in the country's economic
growth. It plays such a significant role that they have their own Ministry of
Steel. India has acquired a central position on the global steel map with its
giant steel mills, acquisition of global scale capacities by players,
continuous modernisation and up-gradation of old plants, improving energy
efficiency, and backward integration into global raw material sources.
Currently, ranked the world's fourth largest crude steel capacity, India
is expected to become the second largest producer of crude steel in the world
by 2015-16. India is also the world's largest producer of sponge iron with a
host of coal-based units located in its mineral-rich states.
India's steel making capacity is estimated to exceed 100 million tonnes
(MT) by 2013 and the production is expected to reach 275 MT by 2020. The per
capita steel consumption has been increased from 34 Kilograms (Kg) in 2004-05
to 59 Kilograms (kg) in 2011-12.
World Steel Association has said steel demand is expected to pick up in
India and demand expected to grow by 5.9% to 75.8 million tones (mt) in 2013
following 2.5% growth in 2012. Steel demand is likely to grow due to monetary
easing which is expected to support investment activities. In 2014, growth in
steel demand is expected to further accelerate to 7.0% thanks to the reform
measures aimed at narrowing the fiscal deficit, coupled with measures to
improve the foreign direct investment climate. The global apparent steel use
will increase by 2.9% to 1454 million tonne (mt) in 2013, following a 1.2%
growth in 2012. In 2014, it is forecast that world steel demand will grow
further by 3.25%.
2012 was a challenging year for the steel industry with apparent steel
use increasing at the slowest rate since 2009 when demand declined by -6.5%.
This was mainly due to the Eurozone crisis which persisted throughout 2012 and
its impact was felt further afield. On the top of this, corrective
macroeconomic measures in major emerging economies also contributed to a concerted
slowdown globally.
However, in the early part of 2013, the key risks to the global economy,
the Eurozone crisis, a hard landing for the Chinese economy, and the US fiscal cliff
issue - have all stabilized considerably and they now expect a recovery in
global steel demand to kick in by the second half, led by the emerging
economies. Yet, the situation on the financial markets remains fragile and the
Eurozone crisis is far from being solved as the recent events in Cyprus have
again shown. In 2014, they expect a further pickup in global steel demand with
the developed economies increasingly contributing to growth.
OUTLOOK
The steel industry in today's world is considered as the backbone of the
economy and is often indicative of economic progress, as it plays a critical
role in infrastructural and overall economic development.
The outlook for the steel sector in India remains positive . The
Government of India has laid special emphasis on development of infrastructure
with huge investments in power, roads and highways, railways, housing, oil and
gas etc which shall drive demand. The Company with a well defined product
portfolio is poised to take advantage of the growth in iron and steel demand.
The new research report - Indian Steel Industry Outlook 2013 says that
the, Indian crude steel production grew at a CAGR of around 12% during
2012-2013. By 2014, the global steel industry may start to emerge from the deep
down turn in 2008. Moreover, with the government proactive incentive plans to
boost economic growth by injecting funds in various industries, such as
construction, infrastructure, automobile, and power will drive the steel
industry in future. Steel consumption in India is expected to grow
significantly in coming years as per capita
finished steel consumption is far less than its regional counterparts.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
(a) Claims against the company not acknowledged
as debt (Security amount deposited against the claim
Rs. 1.5 Lacs) |
0.582 |
1.069 |
|
(b) Guarantees Bank Guarantees (Margin money of Rs. 1.00 Lac deposited
with bank) |
1.000 |
0.000 |
|
Bill Discounted Under LC |
275.522 |
486.292 |
|
Corporate Guarantees on behalf of other
companies |
2092.000 |
2092.000 |
FIXED ASSETS
· Leasehold Land
Freehold
Land
Factory
Building
Other
Building
Plant
and Equipments
Rolls
Furniture
and Fixtures
Vehicles
Computer
STATEMENT OF STANDALONE
UNAUDITED RESULTS FOR THE QUARTER / SIX MONTHS ENDED 30TH SEPTEMBER, 2013
(Rs. In Millions)
|
Sr. No. |
Particulars |
30.09.2013 Unaudited |
30.06.2013 Unaudited |
30.09.2013 Unaudited |
|
|
|
|
|
|
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net sales/income from operations (net of excise duty) |
296.282 |
209.176 |
505.458 |
|
|
(b) Other operating income |
0.000 |
0.000 |
0.000 |
|
|
Total income from
operations (net) |
296.282 |
209.176 |
505.458 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
201.075 |
192.273 |
393.348 |
|
|
(b) Purchases of stock-in-trade |
18.094 |
1.440 |
19.534 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
34.585 |
(25.348) |
9.237 |
|
|
(d) Manufactureing and Employee benefit |
18.708 |
16.424 |
35.132 |
|
|
(e) Depreciation and amortisation expense |
2.165 |
2.286 |
4.451 |
|
|
(f) Other expenses |
11.111 |
7.971 |
19.082 |
|
|
Total expenses |
285.738 |
195.046 |
480.784 |
|
3 |
Profit from
operations before other income, finance costs and exceptional items (1-2) |
10.544 |
14.130 |
24.674 |
|
4 |
Other income |
0.020 |
0.000 |
0.020 |
|
5 |
Profit from
ordinary activities before finance costs and exceptional items (3+4) |
10.564 |
14.130 |
24.694 |
|
6 |
Finance costs (net) |
6.313 |
11.094 |
17.407 |
|
7 |
Profit from
ordinary activities after finance costs but before exceptional items (5-6) |
4.251 |
3.036 |
7.287 |
|
8 |
Exceptional items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit from
ordinary activities before tax (7-8) |
4.251 |
3.036 |
7.287 |
|
10 |
Tax expense |
1.379 |
0.985 |
2.364 |
|
11 |
Net Profit from
ordinary activities after tax (9-10) |
2.872 |
2.051 |
4.923 |
|
12 |
Extraordinary items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit for the
period/year (11-12) |
2.872 |
2.051 |
4.923 |
|
14 |
Paid-up equity share capital (Face value of the share Rs. 10 each) |
90.000 |
90.000 |
90.000 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
0.32 0.32 |
0.23 0.23 |
0.55 0.55 |
|
16 |
Earnings Per Share (EPS) (Rs.) (before and after extraordinary items) |
0.32 0.32 |
0.23 0.23 |
0.55 0.55 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
Number of shares |
3589031 |
3589031 |
3589031 |
|
|
Percentage of shareholding |
39.88% |
39.88% |
39.88% |
|
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 |
5410969 |
5410969 |
5410969 |
|
|
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) |
60.12% |
60.12% |
60.12% |
|
B |
INVESTOR COMPLAINTS |
30.09.2013 |
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
0 |
|
|
Disposed of during the quarter |
0 |
|
|
Remaining unresolved at the end of the quarter |
0 |
STANDLONE
STATEMENT OF ASSETS AND LIBILITIES
|
SOURCES
OF FUNDS |
30.09.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
90.000 |
|
(b) Reserves & Surplus |
166.772 |
|
|
256.772 |
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
270.381 |
|
(b) Deferred tax liabilities (Net) |
4.403 |
|
(c) long-term provisions |
1.855 |
|
|
276.639 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
350.086 |
|
(b) Trade payables |
60.980 |
|
(c) Other current liabilities |
71.597 |
|
(d) Short-term provisions |
3.086 |
|
|
485.749 |
|
TOTAL |
1019.160 |
|
|
|
|
II. ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
|
|
(i) Tangible assets |
42.706 |
|
(b) Non-current Investments |
18.520 |
|
(c) Long-term Loan and Advances |
232.163 |
|
|
293.389 |
|
(2) Current assets |
|
|
(a) Inventories |
308.451 |
|
(b) Trade receivables |
310.271 |
|
(c) Cash and cash equivalents |
0.696 |
|
(d) Short-term loans and advances |
106.353 |
|
|
725.771 |
|
TOTAL |
1019.160 |
Note:
The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on November 13, 2013 and have been subjected to a limited review by the Statutory Auditors.
Provision for Current tax is made on estimated basis. Deferred tax has been provided in full year audited accounts.
The Company's operations fall under single segment.
Previous quarter and financial years figures have been
regrouped / rearranged wherever necessary.
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. 61.92 |
|
|
1 |
Rs. 101.98 |
|
Euro |
1 |
Rs. 83.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.