.
MIRA
INFORM REPORT
|
Report Date : |
29.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
REMI EDELSTAHL TUBULARS LIMITED |
|
|
|
|
Formerly Known
As : |
RALENDRA MECHANICAL INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Remi House, Plot No. 11, Cama Industrial Estate, Goregaon (East),
Mumbai – 400063, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.08.1970 |
|
|
|
|
Com. Reg. No.: |
11-014746 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 95.824
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L28920MH1970PLC014746 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR13940D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR0408G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of S.S. Pipes and Tubes and Wind Power Generation. |
|
|
|
|
No. of Employees
: |
Information declined by the Management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1900000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having moderate track record. The company has seen decrease in its sales turnover. However, profit appears
to be decent during current year. Trade relations are reported a fair. Business is active. Payment term
are low but correct. The company can be considered
for business dealings 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.
INDIAN ECONOMIC OVERVIEW
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan: BB+ |
|
Rating Explanation |
Have moderate risk default. |
|
Date |
January 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based limit: A4+ |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk. |
|
Date |
January 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. B Singh |
|
Designation : |
Finance Manager |
|
Date : |
28.01.2014 |
LOCATIONS
|
Registered / Corporate Office : |
Remi House, Plot No. 11, Cama Industrial Estate, Goregaon (East),
Mumbai – 400063, Maharashtra, India |
|
Tel. No.: |
91-22-40589800/ 888/26851998 |
|
Fax No.: |
91-22-26852335/ 3868 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Plot No. N-211/1, M.I.D.C., Tarapur, Maharashtra, India |
|
Tel. No.: |
91-2525-270492 / 93 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Village Brahmanwel, Taluka Shakri, District Dhule, Maharashtra, India |
|
|
|
|
Factory 3 : |
Survey No.18.1/2,27/2,,
Village - Shevali, Palghar East, |
|
Tel. No.: |
91-25-25605090/91 |
|
Fax No.: |
91-25-25256675 |
|
E-Mail : |
|
|
|
|
|
Factory 4 : |
Survey No 65 / 1, Village-
Valiv (East), District Thane – 401208, Maharashtra, India |
|
Tel. No.: |
91-25-02452027/28 |
|
Fax No.: |
91-25-02454493 |
|
E-Mail : |
|
|
|
|
|
Branch Offices : |
Located at: Ř Ahmedabad Ř
Ř Bengaluru Ř
Ř Chennai Ř Kolkata Ř
Ř
Ř Gurgaon Ř
Ř
Ř
|
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Vishwambhar C. Saraf |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rishabh R. Saraf |
|
Designation : |
Managing director |
|
|
|
|
Name : |
Mr. Rajendra C. Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kamal Kumar Dujodwala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ritvik V. Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shankar Lal Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gopikishan Biyani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sandeep Shriya |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. B Singh |
|
Designation : |
Finance Manager |
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 |
|
|
|
|
|
|
|
|
2419330 |
25.25 |
|
|
2969520 |
30.99 |
|
|
61748 |
0.64 |
|
|
61748 |
0.64 |
|
|
5450598 |
56.88 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5450598 |
56.88 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
9000 |
0.09 |
|
|
1000 |
0.01 |
|
|
10000 |
0.10 |
|
|
|
|
|
|
2037390 |
21.26 |
|
|
|
|
|
|
1542821 |
16.10 |
|
|
525924 |
5.49 |
|
|
15667 |
0.16 |
|
|
14556 |
0.15 |
|
|
1111 |
0.01 |
|
|
4121802 |
43.01 |
|
Total Public shareholding (B) |
4131802 |
43.12 |
|
Total (A)+(B) |
9582400 |
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) |
9582400 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
|
Name of the
Shareholder |
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|
1 |
Fulidevi Saraf Family Trust |
61,748 |
0.64 |
|
2 |
Minakshi R Saraf |
5,52,580 |
5.77 |
|
3 |
Vishwambharlal Chiranjilal HUF |
5,01,264 |
5.23 |
|
4 |
Vandana V Saraf |
4,85,972 |
5.07 |
|
5 |
Ritvik V Saraf |
3,62,268 |
3.78 |
|
6 |
Rishabh R Saraf |
2,04,846 |
2.14 |
|
7 |
Rajendra Chiranjilal HUF |
2,00,000 |
2.09 |
|
8 |
Amrita R Saraf |
1,02,000 |
1.06 |
|
9 |
Anupam Kasera |
9,600 |
0.10 |
|
10 |
Vishwambhar C Saraf |
400 |
0.00 |
|
11 |
Rajendra C Saraf |
400 |
0.00 |
|
12 |
Remi Securities Limited |
12,09,390 |
12.62 |
|
13 |
Rajendra Finance Private Limited |
6,25,000 |
6.52 |
|
14 |
Remi Finance and Investment Private Limited |
6,25,000 |
6.52 |
|
15 |
Vishwakarma Jobworks Limited |
1,50,000 |
1.57 |
|
16 |
Kuberkamal Indl Investments Limited |
72,102 |
0.75 |
|
17 |
Bajrang Finance Limited |
63,084 |
0.66 |
|
18 |
Remi Elektrotechnik Limited |
40,000 |
0.42 |
|
19 |
Remi Sales & Engineering Limited |
21,400 |
0.22 |
|
20 |
Highpower Mercantile Limited |
1,000 |
0.01 |
|
21 |
Vayudoot Trading Limited |
200 |
0.00 |
|
22 |
Calplus Trading Private Limited |
1,62,344 |
1.69 |
|
|
Total |
54,50,598 |
56.88 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
Hanuman Forging and Engineering Private Limited |
1600000 |
16.70 |
|
|
2 |
Lakshminarayan Realfinvest Limited |
310509 |
3.24 |
|
|
3 |
Sangeetha S |
185150 |
1.93 |
|
|
|
Total |
2095659 |
21.87 |
|
Shareholding of securities (including shares, warrants,
convertible securities) of persons (together with PAC) belonging to the category
“Public” and holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of
Total No. of Shares |
|
|
1 |
Hanuman Forging and Engineering Private Limited |
1600000 |
16.70 |
|
|
|
Total |
1600000 |
16.70 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of S.S.
Pipes and Tubes and Wind Power Generation. |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Stainless Steel Pipes and Tubes |
|
N.A. |
10445 |
4894.014 |
|
Wind Power |
(Units) |
N.A. |
2.25 MW |
2940650 |
Notes:
1. The Company
manufactures wide range of small and big diameter stainless steel welded and
Seamless pipe and tubes and installed capacity in tons is based on Standard size
of diameter.
2. Installed capacity is as certified by the management and relied by
auditors being a technical matter.
GENERAL INFORMATION
|
Customer: |
·
Siemens ·
Asin Paints ·
Cipla ·
Biocon ·
Asian Heart Institute ·
Apollo Hospital ·
University of Delhi |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
Information declined by the management
|
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|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
State Bank of India |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sundarlal, Desai and Kanodia Chartered Accountants |
|
Address : |
903, Arcadia, 195, N.C.P.A. Road, Mumbai – 400021, Maharashtra, India |
|
|
|
|
Associates: |
· Remi Process Plant and Machinery Limited · Remi Elektrotechnik Limited · Calplus Trading Private Limited · Magnificent Trading Private Limited ·
Aura Realfinvest Private Limited |
|
|
|
|
Relatives of key
management personnel and other related parties : |
·
Rajendra Electrical Motor Industries |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9582400 |
Equity Shares |
Rs.10/- each |
Rs. 95.824
Millions |
|
|
|
|
|
Note:
Terms/ Rights Attached to Equity Shares:
The company has only one class of equity shares having par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend, if any, in Indian Rupees.
b) In the event of liquidation of the company, the holders of the 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.
c) Details of Shareholders Holding more than 5%
Shares of the Company:
|
Name of the
Shareholder |
No. of shares as
on 31.03.2013 |
|
Vandana V. Saraf |
485,972 |
|
Vishwambharlal Chiranjilal HUF |
501,264 |
|
Minakshi R. Saraf |
552,580 |
|
Rajendra Finance Private Limited |
625,000 |
|
Remi Finance and Investment Private Limited |
625,000 |
|
Remi Securities Limited |
1,209,390 |
|
Hanuman Forging and Engineering Private Limited |
1,600,000 |
d) There is no change in share Capital during the year.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
95.824 |
95.824 |
95.824 |
|
(b) Reserves & Surplus |
370.832 |
351.999 |
339.197 |
|
(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) |
466.656 |
447.823 |
435.021 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
248.422 |
265.704 |
206.051 |
|
(b) Deferred tax liabilities (Net) |
78.206 |
72.174 |
68.336 |
|
(c) Other long term liabilities |
7.538 |
8.308 |
4.908 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
334.166 |
346.186 |
279.295 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
269.167 |
348.648 |
294.721 |
|
(b) Trade payables |
177.431 |
140.222 |
169.921 |
|
(c) Other current
liabilities |
104.367 |
123.512 |
96.660 |
|
(d) Short-term provisions |
0.822 |
0.362 |
5.777 |
|
Total Current Liabilities (4) |
551.787 |
612.744 |
567.079 |
|
|
|
|
|
|
TOTAL |
1352.609 |
1406.753 |
1281.395 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
516.185 |
429.375 |
419.154 |
|
(ii) Intangible Assets |
0.583 |
0.914 |
0.376 |
|
(iii) Capital
work-in-progress |
0.000 |
54.238 |
6.846 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.582 |
0.582 |
0.477 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
23.579 |
16.845 |
23.557 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
540.929 |
501.954 |
450.410 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
433.435 |
361.460 |
441.675 |
|
(c) Trade receivables |
263.041 |
421.374 |
273.630 |
|
(d) Cash and cash
equivalents |
17.466 |
23.864 |
24.825 |
|
(e) Short-term loans and
advances |
96.679 |
96.984 |
90.384 |
|
(f) Other current assets |
1.059 |
1.117 |
0.471 |
|
Total Current Assets |
811.680 |
904.799 |
830.985 |
|
|
|
|
|
|
TOTAL |
1352.609 |
1406.753 |
1281.395 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1619.261 |
1815.372 |
1291.349 |
|
|
|
Other Income |
20.743 |
8.761 |
8.016 |
|
|
|
TOTAL (A) |
1640.004 |
1824.133 |
1299.365 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1236.995 |
1420.178 |
1056.962 |
|
|
|
Purchase of Stock-in-Trade |
34.381 |
20.781 |
18.691 |
|
|
|
Changes in Inventories of Finished Goods and Work-in-Progress |
(30.134) |
(49.756) |
(87.099) |
|
|
|
Employee Benefit Expenses |
68.709 |
64.524 |
61.954 |
|
|
|
Other Expenses |
210.103 |
241.788 |
166.692 |
|
|
|
TOTAL (B) |
1520.054 |
1697.515 |
1217.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
119.950 |
126.618 |
82.165 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
63.726 |
79.937 |
45.767 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
56.224 |
46.681 |
36.398 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
31.235 |
29.003 |
26.870 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
24.989 |
17.678 |
9.528 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6.1.56 |
4.876 |
0.677 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
18.833 |
12.802 |
8.851 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
125.779 |
117.977 |
119.126 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
5.000 |
5.000 |
10.000 |
|
|
BALANCE CARRIED TO
THE B/S |
139.612 |
125.779 |
117.977 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
267.895 |
221.276 |
132.323 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
495.068 |
927.338 |
822.372 |
|
|
|
Stores and Spare Parts |
3.083 |
2.503 |
0.703 |
|
|
|
Fixed Assets |
16.563 |
7.167 |
5.065 |
|
|
TOTAL IMPORTS |
514.714 |
937.008 |
828.140 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.97 |
1.34 |
0.92 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.15
|
0.70 |
0.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.54
|
0.97 |
0.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.85
|
1.31 |
0.75 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.04 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.11
|
1.37 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.47
|
1.48 |
1.47 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
39.662 |
38.122 |
24.867
|
|
|
|
|
|
|
Total |
39.662 |
38.122 |
24.867
|
|
Sr. No. |
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
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 |
Yes |
|
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 |
OPERATIONS:
The continuing drop in new investments coupled with unprecedented depreciation of the Indian currency against the US Dollar and high interest rate regime, has left the industrial scenario to be grim and poses to be challenging for the Company. Similarly the overseas markets continue to be sluggish. During the year, the Company has witnessed a drop of 10% in sales value and 9.62% in quantity, resulting in a reduction in EBIDTA by 5.21%. The management believes that in spite of the lower demand in short term resulting in lower production and profitability, the Company’s products have a promising future in the long term. The technology up-gradation initiated by the Company in first phase has been fully completed due to which the Company has bagged initial trial orders with key customers. However, there is still a need to further continue up-gradation in the current financial year. This up-gradation cost is estimated to be approx. Rs.110.000 Millions which would be financed by internal accruals and term loans. On completion of this up-gradation, the Company would be one of the few companies in India to offer complete power plant tubings from a single facility and in anticipation has initiated market development process for approval into the Nuclear industry. The current order backlog is approx. Rs.700.000 Millions including trial orders from key users. The full benefit of the up-gradation/expansion will only be reflected subsequent to the execution of these trial orders during the current year. However, the current financial year is expected to be a more challenging period owing to the uncertainties, economic slowdown, market development etc.
MANAGEMENT DISCUSSION
AND ANALYSIS:
(a) Industry Structure and Development:
The Stainless steel tube and pipe industry can be classified in the organized sector, in which the Company operates has witnessed a sharp growth in capacity over the past few years. The growth in the product markets have shifted from the traditional focus on oil and petrochemical sector to the power sector. This shift stands to become more prominent in the next few years as the installation of nuclear power plants becomes more critical for the growth of the economy. There has been a revival in demand in the Fertilizer sector owing to the governments focus on increasing the agricultural produce.
OUTLOOK:
The management firmly believes that the Stainless Steel Tubular industry has strong fundamentals and views that this is an essential product required during the further industrialization of the country. Its expansion programme which is catered to meeting the demand for value added products is going to give the Company a chance to participate in the specialized markets which are currently dominated with few manufacturers. The approvals received from users abroad will help in redevelopment of an export market which is currently negligible in the Company’s portfolio.
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Inter Corporate Loans |
107.438 |
56.277 |
|
Deferred Sales Tax Liabities |
75.756 |
84.320 |
|
Inter Corporate Loans from Related Parties |
0.000 |
54.457 |
|
Total |
183.194 |
195.054 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10323051 |
22/10/2011 |
90,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, 2ND FLOOR, THE ARCADE, |
B27839406 |
|
2 |
90243194 |
22/10/2011 * |
90,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH, 2ND FLOOR, THE ARCADE, |
B27841535 |
|
3 |
80002516 |
20/04/2009 * |
1,217,900,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH, 'THE ARCADE', 2ND FLOOR, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
A61330569 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
Particulars |
31.03.2013 |
31.03.2012 |
|
Bank Guarantees given by bankers on behalf of the Company |
72.262 |
72.849 |
|
Guarantee given by the Company to Bankers on behalf of associate Company |
66.500 |
66.500 |
|
Bills discounted |
56.270 |
31.260 |
|
Claim of Collector |
35.347 |
35.347 |
|
Central Excise disputed in appeal |
27.818 |
7.094 |
|
Sales Tax disputed in appeal |
0.196 |
0.000 |
|
In respect of custom Duty |
3.301 |
3.301 |
|
Income Tax disputed in appeal |
0.019 |
0.000 |
FIXED ASSETS
TANGIBLE ASSETS:
· Land
· Factory Building
· Plant and Machinery
· Dies and Moulds
· Electrical Installation
· Office Equipments
· Air Conditioners
· Computers
· 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.62.99 |
|
|
1 |
Rs.104.61 |
|
Euro |
1 |
Rs.86.17 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
31 |
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.