MIRA
INFORM REPORT
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Report Date : |
15.07.2014 |
IDENTIFICATION DETAILS
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Name : |
MUKAND LIMITED (w.e.f. 23.03.1989) |
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Formerly Known
As : |
MUKAND IRON AND STEEL WORKS LIMITED |
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Registered
Office : |
Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai –
400021, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
29.11.1937 |
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Com. Reg. No.: |
11-002726 |
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Capital
Investment / Paid-up Capital : |
Rs.787.500 Millions |
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CIN No.: [Company Identification
No.] |
L99999MH1937PLC002726 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM19254E |
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PAN No.: [Permanent Account No.] |
AAACM5008R |
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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 stainless steel, alloy steel, stainless
steel billets, hot rolled. |
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No. of Employees
: |
1970
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by losses
that company has incurred from its operation and below average financial
performance. 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.
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
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
31-03.2014.
INFORMATION DENIED
Management Non Co-Operative (91-22-21727500)
LOCATIONS
|
Registered Office : |
Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai –
400021, Maharashtra, India |
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Tel. No.: |
22-61216666/ 61216629 |
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Fax No.: |
22-22021174 |
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E-Mail : |
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Website : |
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Branch Office : |
Located at : ·
Bangalore ·
Chennai ·
Delhi ·
Kolkata ·
Visakhapatnam |
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Factory 1 : |
Thane-Belapur Road, Dighe, Kalwe, Thane – 400 605, Maharashtra, India |
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Tel. No.: |
91-22-21727500/7700 |
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Fax No.: |
91-22-25348179 |
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Factory 2 : |
Ginigera, Karnataka – 583 228, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Nirajkumar Ramkrishnaji Bajaj |
|
Designation : |
Managing Director |
|
Address : |
Mount Unique, 13th Floor, 62 Peddar Road, Mumbai – 400026, Maharashtra, India |
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Date Of Birth/Age : |
10.10.1954 |
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Date Of Appointment : |
03.07.1989 |
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DIN No. : |
00028261 |
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Name : |
Mr. Rajesh Viren Shah |
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Designation : |
Managing Director |
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Address : |
7 Janaki Kutir, Juhu Tara Road, Juhu, Mumbai – 400049, Maharashtra,
India |
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Date Of Birth/Age : |
01.10.1951 |
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Date Of Appointment : |
03.07.1989 |
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DIN No. : |
00033371 |
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Name : |
Mr. Dhirajlal Shantilal Mehta |
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Designation : |
Director |
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Address : |
301/302 Goragandhi Apartments, 3 Laburnam Road, Gamdevi, Mumbai –
400007, Maharashtra, India |
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Date Of Birth/Age : |
27.04.1936 |
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Date Of Appointment : |
22.07.1976 |
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DIN No. : |
00038366 |
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Name : |
Mr. Suketu Viren Shah |
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Designation : |
Managing Director |
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Address : |
A/52 Darshan Apartments, Mount Pleasant Road, Malabar Hill, Mumbai –
400006, Maharashtra, India |
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Date Of Birth/Age : |
04.12.1954 |
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Date Of Appointment : |
03.07.1989 |
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DIN No. : |
00033407 |
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Name : |
Mr. Vinodchand Sakarchand Shah |
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Designation : |
Director |
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Address : |
11 Om Surya Vihar Co Op Housing Society Ltd, Road No 25 – B, Sion
Matunga Scheme No 6, Mumbai – 400022, Maharashtra, India |
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Date Of Birth/Age : |
07.11.1930 |
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Date Of Appointment : |
03.07.1989 |
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DIN No. : |
00033327 |
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Name : |
Mr. Narendrakumar Pannalal Jain |
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Designation : |
Director |
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Address : |
E-50, SAKET, Indore- 452001, Madhya Pradesh , India |
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Date Of Birth/Age : |
21.12.1930 |
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Date Of Appointment : |
16.01.1990 |
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DIN No. : |
00460220 |
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Name : |
Mr. Narendra Jeewanlal Shah |
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Designation : |
Director |
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Address : |
43- B, Meher Apartments, Altamount Road, Mumbai – 400026, Maharashtra,
India |
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Date Of Birth/Age : |
17.11.1928 |
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Date Of Appointment : |
16.01.1990 |
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DIN No. : |
00047403 |
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Name : |
Mr. Naresh Chandra Sharma |
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Designation : |
Director |
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Address : |
Flat No 605 Dosti Blossoms, Dosti Acres Complex, Off S M Road Wadala
East, Mumbai – 400037, Maharashtra, India |
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Date Of Birth/Age : |
26.11.1942 |
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Date Of Appointment : |
29.05.2004 |
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DIN No. : |
00054922 |
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Name : |
Mr. Prakash Vasantlal Mehta |
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Designation : |
Director |
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Address : |
123 A Maker Tower, Cuffe Parade, Coloba, Mumbai – 400005, Maharashtra,
India |
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Date Of Birth/Age : |
12.02.1942 |
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Date Of Appointment : |
27.09.2007 |
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DIN No. : |
00001366 |
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Name : |
Mr. Pradip Panalal Shah |
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Designation : |
Director |
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Address : |
72A Embassy Apartments, 7th Floor Napean Sea Road Mumbai – 400006, Maharashtra, India |
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Date Of Birth/Age : |
07.01.1953 |
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Date Of Appointment : |
27.09.2007 |
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DIN No. : |
00066242 |
|
Name : |
Mr. Amit Yadav |
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Designation : |
Director |
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Address : |
D-3, Jeevan Jyot, Setalwad
Lane, Napeansea Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
10.08.1954 |
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Date of Appointment : |
27.10.2010 |
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DIN No. : |
02768784 |
KEY EXECUTIVES
|
Name : |
Jayavanth Kallianpur Mallya |
|
Designation : |
Secretary |
|
Address : |
Flat No 23, A-6/7 Happy Jeevan, Lic Colony Borivli (West), Mumbai – 400103,
Maharashtra, India |
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Date of Birth/Age : |
22.12.1956 |
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Experience : |
AAFPM5030K |
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Date of Appointment : |
01.10.2006 |
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STEEL DIVISION |
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Name : |
Mr. A M Kulkarni |
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Designation : |
Chief Executive (Steel Plant, Thane) |
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Name : |
Mr. R Sampath Kumar |
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Designation : |
Chief Executive (Steel Plant, Ginigera) |
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Name : |
Mr. C H Sharma |
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Designation : |
Technical Advisor, Stee |
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Name : |
Mr. Sidharth Shah |
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Designation : |
Chief of Materials Management |
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Name : |
Mr. V M Mashruwala |
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Designation : |
Chief of Marketing (Alloy and Stainless Steel) |
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Name : |
Mr. Virendra K Mittal |
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Designation : |
Business Development Director |
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INDUSTRIAL MACHINERY DIVISION |
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Name : |
Mr. R Jagannathan |
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Designation : |
Chief Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
41306997 |
29.21 |
|
|
62424011 |
44.15 |
|
|
103731008 |
73.36 |
|
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Total shareholding
of Promoter and Promoter Group (A) |
103731008 |
73.36 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6007 |
0.00 |
|
|
101439 |
0.07 |
|
|
7244583 |
5.12 |
|
|
908621 |
0.64 |
|
|
8260650 |
5.84 |
|
|
|
|
|
|
10418167 |
7.37 |
|
|
|
|
|
|
10177520 |
7.20 |
|
|
8318294 |
5.88 |
|
|
500222 |
0.35 |
|
|
106269 |
0.08 |
|
|
393953 |
0.28 |
|
|
29414203 |
20.80 |
|
Total Public
shareholding (B) |
37674853 |
26.64 |
|
Total (A)+(B) |
141405861 |
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) |
141405861 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
Encumbered shares (*) |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|||
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|
||
|
1 |
Rahul Bajaj |
9,04,044 |
0.64 |
0 |
0.00 |
0.00 |
0.64 |
|
2 |
Niraj Bajaj |
1,28,87,156 |
9.11 |
0 |
0.00 |
0.00 |
9.11 |
|
3 |
Rajesh V Shah |
72,00,842 |
5.09 |
3644642 |
50.61 |
2.58 |
5.09 |
|
4 |
Suketu V Shah |
71,69,018 |
5.07 |
3063294 |
42.73 |
2.17 |
5.07 |
|
5 |
Sanjivnayan Bajaj |
1,787 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
6 |
Shekhar Bajaj |
7,66,094 |
0.54 |
0 |
0.00 |
0.00 |
0.54 |
|
7 |
Madhur Bajaj |
7,06,200 |
0.50 |
0 |
0.00 |
0.00 |
0.50 |
|
8 |
Anant Bajaj |
86,400 |
0.06 |
0 |
0.00 |
0.00 |
0.06 |
|
9 |
Sunaina Kejriwal |
1,363 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
10 |
Suman Jain |
3,744 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
11 |
Anjana Viren Sheth |
30,634 |
0.02 |
0 |
0.00 |
0.00 |
0.02 |
|
12 |
Narendrakumar J Shah |
99,605 |
0.07 |
0 |
0.00 |
0.00 |
0.07 |
|
13 |
Jyoti Shah |
21,117 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
14 |
Bansri Rajesh Shah |
34,31,542 |
2.43 |
615586 |
17.94 |
0.44 |
2.43 |
|
15 |
Czaee Sukumar Shah |
40,57,212 |
2.87 |
0 |
0.00 |
0.00 |
2.87 |
|
16 |
Priyaradhika Rajesh Shah |
9,60,046 |
0.68 |
480023 |
50.00 |
0.34 |
0.68 |
|
17 |
Kaustubh Rajesh Shah |
96,000 |
0.07 |
48000 |
50.00 |
0.03 |
0.07 |
|
18 |
Rishabh Sukumar Vir |
1,91,138 |
0.14 |
0 |
0.00 |
0.00 |
0.14 |
|
19 |
Bajaj Auto Employees Welfare Funds |
22,45,592 |
1.59 |
0 |
0.00 |
0.00 |
1.59 |
|
20 |
Shekharkumar Ramkrishnaji Bajaj |
1,21,422 |
0.09 |
0 |
0.00 |
0.00 |
0.09 |
|
21 |
Surendra Bhaichand Jhaveri (Mukand EWF) |
3,26,041 |
0.23 |
0 |
0.00 |
0.00 |
0.23 |
|
22 |
Akhil Investments and Traders Private Limited |
260 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
23 |
Bachhraj and Company Pvt.Limited |
33,50,692 |
2.37 |
0 |
0.00 |
0.00 |
2.37 |
|
24 |
Bachhraj Factories Private Limited |
13,78,168 |
0.97 |
0 |
0.00 |
0.00 |
0.97 |
|
25 |
Bajaj Holding and Investment Limited |
81,13,564 |
5.74 |
0 |
0.00 |
0.00 |
5.74 |
|
26 |
Bajaj Sevashram Private Limited |
25,00,160 |
1.77 |
0 |
0.00 |
0.00 |
1.77 |
|
27 |
Baroda Industries Private Limited |
1,43,26,616 |
10.13 |
0 |
0.00 |
0.00 |
10.13 |
|
28 |
Jamnalal Sons Private Limited |
2,62,95,522 |
18.60 |
3869090 |
14.71 |
2.74 |
18.60 |
|
29 |
Jeewan Limited |
47,85,369 |
3.38 |
3688336 |
77.08 |
2.61 |
3.38 |
|
30 |
Mukand Engineers Limited |
13,62,400 |
0.96 |
681200 |
50.00 |
0.48 |
0.96 |
|
31 |
Niraj Holdings Private Limited |
1,000 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
32 |
Sidya Investments Limited |
1,60,000 |
0.11 |
0 |
0.00 |
0.00 |
0.11 |
|
33 |
Valiant Investments and Trades Private Limited |
260 |
0.00 |
260 |
100.00 |
0.00 |
0.00 |
|
34 |
Bahar Mercantile Limited |
1,50,000 |
0.11 |
0 |
0.00 |
0.00 |
0.11 |
|
|
Total |
10,37,31,008 |
73.36 |
16090431 |
15.51 |
11.38 |
73.36 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Life Insurance Corporation of India |
7228076 |
5.11 |
5.11 |
|
|
2 |
Shinano Retail Private Limited |
3579056 |
2.53 |
2.53 |
|
|
3 |
Rakesh Sajjan Gupta |
2127074 |
1.50 |
1.50 |
|
|
|
Total |
12934206 |
9.15 |
9.15 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
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 |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Life Insurance Corporation of India |
7228076 |
5.11 |
5.11 |
|
|
|
Total |
7228076 |
5.11 |
5.11 |
As on 13.08.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of
Holding |
|
Public financial companies |
9.91 |
|
Nationalised or other banks |
0.14 |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
1.73 |
|
Bodies corporate |
51.26 |
|
Directors or relatives of Directors |
15.76 |
|
Other top fifty shareholders |
5.94 |
|
Other |
15.26 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and exporter of stainless steel, alloy steel, stainless
steel billets, hot rolled. |
GENERAL INFORMATION
|
No. of Employees : |
1970
(Approximately) |
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Bankers : |
· Allahabad Bank · ABN Amro Bank N.V. · Bank of Baroda, Khand Bazar · Dena Bank · Bank of India, Fort Branch, Mumbai · HDFC Bank Limited · Indian Overseas Bank · IDBI Bank, Nariman Point Branch, Mumbai · ICICI Bank Limited, Backbay Reclamation Branch, Mumbai, Maharashtra, India · Punjab National Bank · State Bank of India ·
Axis Bank Limited |
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Facilities : |
Note : Long Term
Borrowings
Short term
Borrowings: Working Capital
Facilities a) Working Capital Facilities
from the Banks and other non-funded facilities are secured by hypothecation
of stocks (excluding machinery spares) and book debts. The said facilities
are also secured by way of second and subservient pari passu charge against
the same assets as given to Trustees for Debentures as shown at Note No.3.
The said charge shall be second and subservient to all other first charges
created in favour of Trustees for all the series of Debentures and enders
for their term loans at (i) and (ii) at Note No.3 (I). Note: Security given for the debentures, term loans at Note No.3 (I)
and working capital facilities mentioned above exclude: 48 acres of grant land at Kalwe and Dighe, District Thane in the State
of Maharashtra. Leasehold land at Dighe, Thane, as it is mortgaged to lenders covered
at Note No.3(I) (iv), (ix), (x) and (xi). Freehold land acquired for Coke Oven Plant at Ginigera / Kankapura,
District Ginigera in the State of Karnataka. Plant and Machinery of Captive Power Plant at Ginigera / Kankapura,
District Ginigera in the State of Karnataka is given as security to lenders
covered at Note No.3 (I) (vi). 39.58 acres leasehold land at lonand, District Satara in the State of
Maharashtra, for Company’s project of expansion of finishing facilities for
steel products. 43.14 acres of leasehold land at Sinnar, District Nasik, in the State
of Maharashtra, for Company’s project of expansion of its Industrial
Machinery Division. 152.83 acres of freehold land in the State of
Jharkhand, for Company’s projects in that State. b) Company has
defaulted in repayment of current maturity of long Term Debt to lenders to
extent of Rs.315.900 Millions out of which Rs.228.400 Millions has been paid
after close of the year. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Financial
Institutions : |
Housing Development Finance Corporation Limited, Ramon House
169backbay Reclamation, H T Parekh Marg, Mumbai - 400020,Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Haribhakti and Company Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
|
PAN No.: |
AAAFH2010F |
|
|
|
|
Others : |
·
Mukand Engineers Limited CIN No.: L45200MH1987PLC042378 ·
Stainless India Limited CIN No.: U27107RJ1995PLC010920 ·
Hospet Steels Limited CIN No.: U85110KA1998PLC023759 |
|
|
|
|
Subsidiary
Company : |
·
Mukand International FZE ·
Mukand Sumi Metal Processing Limited CIN No.: U27300MH2012PLC234000 ·
Bombay Forgings Limited CIN No.: U28910MH1966PLC013399 ·
Mukand Global Finance Limited CIN No.: U67120MH1979PLC021418 |
CAPITAL STRUCTURE
As on 13.08.2013
Authorised Capital : Rs. 1600.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.1470.322 Millions
As On 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
118000000 |
Equity Shares |
Rs.10/- each |
Rs.118.000 Millions |
|
7000000 |
Preference shares |
Rs.10/- each |
Rs.70.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.125.000
Millions |
Issued,:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
73159805* |
Equity Shares |
Rs.10/- each |
Rs.73.160 Millions |
|
5626320 |
Preference shares |
Rs.10/- each |
Rs.5.630 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.78.790
Millions |
* includes 28,031 Equity Shares which have been kept in abeyance by the Stock Exchange Authorities
Subscribed & Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
73114129 |
Equity Shares |
Rs.10/- each |
Rs.73.110 Millions |
|
563000 |
Preference shares |
Rs.10/- each |
Rs.5.630 Millions |
|
|
Add: Forfeited shares |
|
Rs.0.010 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.78.750
Millions |
a.
Reconciliation of the shares outstanding at the beginning
and at the end of the reporting period
|
Equity Shares |
Number
of Shares |
|
At the beginning of the year |
73.100 |
|
Add : issued during the period |
0.000 |
|
Less : bought back during the year |
0.000 |
|
Outstanding at
the end of the year |
73.100 |
|
Preference
Shares (CRPS) |
Number
of Shares |
|
At the beginning of the year |
5.600 |
|
Add : issued during the period |
0.000 |
|
Less : bought back during the year |
0.000 |
|
Outstanding at
the end of the year |
5.600 |
b.
Terms / rights attached to equity shares
The Company has only one class of equity share having a par value of
Rs.10/- per share. Each holder of equity share is entitled to one vote per
share.
The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, except in
case of interim dividend. During the year ended 31 March 2013, the amount of
dividend per share recognized as distribution to equity shareholders was Rs.
Nil (31 March 2012: Re. Nil).
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.
c.
Terms of redemption of CRPS
Pursuant to the order of the Hon’ble High Court of Judicature at Bombay
dated October 14, 2003, the Company had cancelled 22 ½ equity shares issued and
unallotted and reduced 20% of the outstanding equity shares amounting to
5,626,320 equity shares. In lieu of cancelled shares, the company has issued
5,626,320 0.01% Cumulative Redeemable Preference Shares of Rs.10/- each
entitled for cumulative Preference dividend of 0.01% p.a. and redeemable in
five equal annual installments starting from September. 2019. In the event of
liquidation of the company before redemption, the holders of CRPS will have
priority over equity shares in the payment of dividend and repayment of
capital.
d.
The Company does not have any holding company.
e.
There are no bonus shares issued, shares issued for
consideration other than cash and shares bought back during the period of five years
immediately preceding the reporting date.
f.
Details of shareholders holding more than 5% shares
in the company
|
Name of
Shareholder (Equity Shares) |
Number
of Shares |
% holding |
|
Jamnalal Sons Private Limited |
13147761 |
17.98 |
|
Life Insurance Corporation of India |
7228076 |
7.89 |
|
Bajaj Holdings and Investments Limited |
4056782 |
5.55 |
|
Jeewan Limited |
4785369 |
6.55 |
|
CRPS of Rs.10/-
each fully paid |
|
|
|
Life Insurance Corporation of India |
595545 |
10.58 |
|
Jamnalal Sons private Limited |
474143 |
8.43 |
As per of the
company, including its register of shareholders / members and other
declarations received from shareholders regarding beneficial interest, the
above shareholding represents both legal and beneficial ownerships of shares.
g.
There are no shares reserved for issue under
options and contracts / commitments for sale of shares / disinvestment.
h.
There are no unpaid calls from any Director and
officer.
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 |
787.500 |
787.500 |
787.500 |
|
(b) Reserves & Surplus |
20032.700 |
20470.800 |
21449.700 |
|
(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) |
20820.200 |
21258.300 |
22237.200 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
8567.200 |
7741.900 |
8900.900 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
146.500 |
|
(c) Other long term liabilities |
120.300 |
121.900 |
44.900 |
|
(d) long-term provisions |
300.500 |
284.900 |
242.100 |
|
Total
Non-current Liabilities (3) |
8988.000 |
8148.700 |
9334.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
8846.100 |
8405.500 |
5769.900 |
|
(b) Trade payables |
6558.500 |
7327.200 |
6253.100 |
|
(c) Other current liabilities |
6393.100 |
4387.700 |
4070.100 |
|
(d) Short-term provisions |
29.100 |
45.300 |
163.500 |
|
Total
Current Liabilities (4) |
21826.800 |
20165.700 |
16256.600 |
|
|
|
|
|
|
TOTAL |
51635.000 |
49572.700 |
47828.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
24071.500 |
23896.500 |
24317.100 |
|
(ii) Intangible Assets |
3.800 |
4.700 |
4.800 |
|
(iii) Capital work-in-progress |
1461.000 |
1042.200 |
236.500 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2278.100 |
1096.700 |
1096.700 |
|
(c) Deferred tax assets (net) |
82.400 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1124.900 |
1228.800 |
926.800 |
|
(e) Other Non-current assets |
482.800 |
482.800 |
482.800 |
|
Total
Non-Current Assets |
29504.500 |
27751.700 |
27064.700 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
10346.400 |
9963.100 |
9251.600 |
|
(c) Trade receivables |
9352.600 |
8769.800 |
8703.500 |
|
(d) Cash and cash equivalents |
748.000 |
786.900 |
1043.800 |
|
(e) Short-term loans and
advances |
1664.200 |
2271.800 |
1735.200 |
|
(f) Other current assets |
19.300 |
29.400 |
29.400 |
|
Total
Current Assets |
22130.500 |
21821.000 |
20763.500 |
|
|
|
|
|
|
TOTAL |
51635.000 |
49572.700 |
47828.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21262.400 |
25659.600 |
25486.500 |
|
|
|
Other Income |
108.700 |
98.900 |
504.100 |
|
|
|
TOTAL (A) |
21371.100 |
25758.500 |
25990.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
11212.400 |
13517.000 |
13791.400 |
|
|
|
Changes in inventories of finished goods and work in progress |
(611.300) |
(197.700) |
(1694.200) |
|
|
|
Employee Benefit Expenses |
1365.300 |
1318.500 |
1254.700 |
|
|
|
Other Expenses |
8324.900 |
9772.800 |
9741.200 |
|
|
|
Expenditure transfer to capital account / Capital work in progress |
(155.200) |
(44.200) |
(19.800) |
|
|
|
TOTAL (B) |
20136.100 |
24366.400 |
23073.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1235.000 |
1392.100 |
2917.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2153.800 |
1818.700 |
1626.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(918.800) |
(426.600) |
1290.900 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
641.500 |
657.200 |
678.100 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL
ITEMS |
1083.300 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(477.000) |
(1083.800) |
612.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
82.400 |
148.800 |
146.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(394.600) |
(935.000) |
466.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export (FOB) |
1518.300 |
2169.500 |
1535.369 |
|
|
|
Income from engineering contracts |
5.300 |
3.100 |
0.000 |
|
|
|
Dividends |
2.700 |
2.300 |
11.405 |
|
|
|
Others |
1.600 |
1.600 |
20.081 |
|
|
TOTAL EARNINGS |
1527.900 |
2176.500 |
1566.855 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2960.400 |
3834.500 |
4684.074 |
|
|
|
Stores, Spare Parts, Components and Fuel |
391.800 |
615.900 |
538.177 |
|
|
|
Goods for trade |
2.000 |
0.000 |
63.028 |
|
|
|
Capital Goods |
249.700 |
424.500 |
15.914 |
|
|
TOTAL IMPORTS |
3603.900 |
4874.900 |
5301.193 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(20.21) |
(12.79) |
6.38 |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
|
|
1st
Quarter |
2nd
Quarter |
|
Net sales |
5970.100 |
6239.100 |
|
Total Expenditure |
5487.900 |
5873.700 |
|
PBIDT (Excluding Other Income) |
482.200 |
365.400 |
|
Other income |
29.500 |
29.900 |
|
Operating Profit |
511.700 |
395.200 |
|
Interest |
616.500 |
569.800 |
|
Exceptional Items |
(132.100) |
(30.900) |
|
PBDT |
(236.900) |
(205.500) |
|
Depreciation |
163.000 |
165.900 |
|
Profit Before Tax |
(399.900) |
(371.400) |
|
Tax |
(53.000) |
(59.200) |
|
Profit after tax |
(346.900) |
(312.200) |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(346.900) |
(312.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(1.85)
|
(3.63)
|
1.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.24)
|
(3.64)
|
2.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.03)
|
(2.28)
|
1.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02)
|
(0.05)
|
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.84
|
0.76
|
0.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.01
|
1.08
|
1.25 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
787.500 |
787.500 |
787.500 |
|
Reserves & Surplus |
21449.700 |
20470.800 |
20032.700 |
|
Net
worth |
22237.200 |
21258.300 |
20820.200 |
|
|
|
|
|
|
long-term borrowings |
8900.900 |
7741.900 |
8567.200 |
|
Short term borrowings |
5769.900 |
8405.500 |
8846.100 |
|
Total
borrowings |
14670.800 |
16147.400 |
17413.300 |
|
Debt/Equity
ratio |
0.660 |
0.760 |
0.836 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
25,486.500 |
25,659.600 |
21,262.400 |
|
|
|
0.679 |
(17.137) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
25,486.500 |
25,659.600 |
21,262.400 |
|
Profit After tax |
466.600 |
(935.000) |
(394.600) |
|
|
1.83% |
(3.64%) |
(1.86%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM DEBT
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current maturities of long-term debt |
4191.500 |
2665.100 |
2790.600 |
|
|
|
|
|
|
Total |
4191.500 |
2665.100 |
2790.600 |
|
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
|
LITIGATION DETAILS |
||||||||
|
Bench:- Bombay |
|
|||||||
|
Lodging No:- |
NMSL/714/2013 |
Failing Date:- |
26.03.2013 |
Reg. No.:- |
NMS/605/2013 |
Reg. Date:- |
04.04.2013 |
|
|
|
||||||||
|
|
Main Matter |
|
||||||
|
Lodging No:- |
SL/605/2010 |
Reg. No.:- |
S/516/2010 |
|||||
|
Petitioner:- |
MUMBAI INTERNATIONAL AIRPORT PRIVATE LIMITED |
Respondent:- |
MUKAND LIMITED |
|||||
|
|
|
Resp.Adv:- |
N V SANGLIKAR FOR DEFT NO 1 |
|||||
|
|
|
|||||||
|
District:- |
MUMBAI |
|||||||
|
|
||||||||
|
Bench:- |
SINGLE |
Category:- |
NOTICE OF MOTION |
|||||
|
Status:- |
Pre-Admission |
Stage:- |
NOTICE OF MOTION FOR HEARING [ORIGINAL SIDE MATTERS] |
|||||
|
Last Date:- |
23/06.2014 |
|||||||
|
Last Coram:- |
PROVISIONAL BOARD |
|||||||
|
|
|
|||||||
|
Act:- |
Code of Civil Procedure 1908 |
|||||||
UNSECURED LOAN
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred Sales Tax Loan |
13.900 |
18.600 |
|
Deposits from others |
1025.600 |
1196.600 |
|
Intercorporate borrowings |
2469.500 |
0.000 |
|
SHORT TERM
BORROWINGS |
|
|
|
Intercorporate borrowings |
1956.600 |
2495.700 |
|
|
|
|
|
Total |
5465.600 |
3710.900 |
MANAGEMENT
DISCUSSION AND ANALYSIS:
GROSS SALES,
SERVICES AND OTHER INCOME:
The gross sales from
the operations and other income for the year was at Rs.23480.000 Millions as
against Rs.28000.000 Millions in the previous year.
Revenues from
exports went down at Rs.1518.300 Millions during the year as against
Rs.2169.500 Millions in the previous year.
Loss for the year
is reduced to Rs.394.600 Millions as against loss of Rs.935.000 Millions in the
previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS:
GENERAL:
The year that is past
will be remembered for the economic and political turmoil that engulfed most
parts of the world. It will be remembered as a year that witnessed the economic
decline of Europe and America and a sluggish performance by the BRIC nations
which fell short of all optimistic predictions.
In India, rising
fiscal deficits, adverse trade balance and continued inflation resulted in high
interest rates and weakening of the Rupee. Uncertain political environment
resulting in policy and regulatory delays in implementing reforms slowed down
the economic growth. The industrial growth was at 0.9% during April-February
2013, even lower than 3.3% recorded during April-February 2008-09 (the year of
financial crisis). In FY 13manufacturing grew at 1%, mining industry recorded a
fall of 2.6% while the auto industry grew only by 3%.
In such an
environment, the Company too witnessed a slowdown with its turnover and other
income dropping to Rs.23480.000 Millions in the year as against Rs.28000.000
Millions in the previous year.
SPECIALTY STEEL
DIVISION:
Subject is
predominantly engaged in the business of special and alloy steel and stainless
steel long products that feed into the auto components, engineering, defense
and fasteners industries. The fortunes of this business are closely linked with
the availability and prices of raw-materials, growth of the user industries and
overall growth of the economy.
The utilization of
steelmaking capacity at the Steel Plant at Ginigera continued to remain low for
the year due to the paucity of iron ore supplies and steep increase in iron ore
prices resulting from the continued partial ban on mining operations and
transportation of iron ore in the state of Karnataka by the Hon’ble Supreme
Court since July- August 2011. The resulting loss of production contributed
mainly to the losses incurred by the Company during the year.
IRON ORE:
As per the Order
by the Hon’ble Supreme Court in July-August
2011, a total of
166 iron ore mines were closed. After exhaustive investigations under the aegis
of a committee appointed by the Hon’ble Supreme Court, the Court permitted
re-opening of only 18 ‘Category A’ mines on 3rd September 2012 subject to the
conditions laid down by the Court. By the end of March 2013, only 9 mines
resumed mining operations of which one mine had to be closed down. There was
thus only a marginal improvement in the availability of iron ore during the
year.
At the beginning
of the Financial Year 2012-13, it was expected that the balance ‘Category A’
and ‘Category B’ mines would reopen by the first half of 2012. Unfortunately,
this did not happen and it was only in April 2013 that the Hon’ble Supreme
Court permitted re-opening of the balance of ‘Category A’ and ‘Category B’
mines subject to specified conditions. The Court also simultaneously directed
termination of mining leases of 49 ‘Category C mines’. The opening of the
balance ‘Category A’ and ‘Category B’ mines will be a gradual process as each
of the mines has to first obtain various approvals and implement a Reclamation
and Rehabilitation Plan as approved by the competent authority.
The Hon’ble
Supreme Court’s Order referred above, also lifted the ban on allocation of new
mining leases by Government of Karnataka coupled with termination of leases for
the 49 ‘Category C’ mines. These iron ore mines will now be available for new
allotment to the steel plants and is expected to help them get mining leases
for captive requirements.
With limited availability
of high grade iron ore in the Supreme Court mandated e-auctions, the price of
iron ore continued to remain high and the quality of available iron ore was
also poor. The situation for subject was even more challenging as it can only
use iron ore lumps which are in short supply and the prices of which too were
much higher than iron ore fines. The Company’s need to reduce its dependence on
iron ore lumps fructified in the second half of the year under report with the
commissioning of the Sinter Plant which uses iron ore fines. Thus the company’s
input cost for iron ore used in making steel will be lower during the year in
progress.
INPUT PRICES:
On account of the
recessionary conditions and slump in the industrial activity in Europe and
lackluster growth in the United States of America, the commodity prices in
general were subdued, crude oil prices moved down, coking coal prices softened,
prices of nickel, scrap and other imported input commodities also declined.
However, due to the depreciation of the Indian Rupee during the year, the
benefits on account of reduced prices have partially been negated. In India,
however, the prices of Ferrochrome high carbon, one of the major inputs for
alloy and stainless steel production went up by about 11% during the year due
to power cuts in the States of Orissa and Andhra Pradesh, where the
manufacturing facilities of this input are located.
The Steel industry
in India is largely dependent on imports of key inputs like coking coal,
metallurgical coke, scrap, nickel and molybdenum. The prices of these inputs
continue to remain volatile on the basis of global demand and supply factors
and also, the highly volatile Rupee-Dollar exchange rate.
DEMAND:
The market for
special carbon and alloy steel is expected to remain positive in the long run
with the automobile sector expected to pick up momentum. Moreover, India is
emerging as a major automobile hub for exports of vehicles as well as
components. Emphasis on the development of the infrastructure segment by the Government
is also likely to push up the demand for commercial vehicles.
The demand for bright bars and wires will
increase considerably with the growth in automobile and engineering sectors and
in view of this, subject entered into a Joint Venture with Sumitomo
Corporation, Japan
to increase the output of bright bars and wires for which, the Company will
supply larger quantities of wire rods and bars.
Subject expects prices of steel products to continue to be under pressure on
account of the expansion in capacities by existing players, entry of new
players in the alloy steel market and cheaper imports. The import duties on
special and alloy steel are presently only at 5% and imports from the countries
under the free trade agreement attract even a lower rate of 3% resulting in
increased imports. Countries like China, Korea, Japan, Germany and France are
stepping up their exports of steels to India to offset lower demand in other
Asian and European countries. The sales of CHQ special steel wire rods were severely
affected as the said segment was dominated by cheaper imports and stiff
competition from domestic players.
The Indian auto
industry grew by only 3% during the year as compared to 12% in the previous
year. Several factors including high inflation, firm interest rates and rising
fuel prices had a dampening effect on demand for automobiles. The growth rate
of the sector however, is expected to improve in the year in progress to 6% to
8% and 9% to 11% in the long run. The growth of two-wheelers and low capacity
vehicles (LCVs) is expected to grow rapidly.
The business of
stainless steel long products largely depends on international markets. The
markets in Europe and the USA are yet to emerge out of the recessionary
conditions of the year 2008-09. This resulted in reduced off-take of stainless
steel wire rods and bars by Indian producers manufacturing Bright Bars and
Wires for export. Stiff competition from Indian producers as well as from
international mills has put pressure on prices.
The demand for stainless
steel is expected to grow at 6% to 8% per annum in the next five years. The
demand for stainless steel in oil and gas sector has already revived. The
investment made by subject in hardening, tempering and quenching facilities
will provide better opportunities to cater to this market. The increase in
demand for stainless steel may shoot up the present low nickel prices and
slow-down the growth. The Company has developed new grades of wire rods and
bars to widen its customer base.
The strategy for
alloy and stainless steel business is to increase sale of high revenue
contributing products, value added products and develop new products. The
Company will widen its distribution network and tie up with automobile
manufacturers who can take advantage of the Company being a one-stop-shop.
Exports of
subject’s steel products were lower mainly on account of weak demand for the
Company’s stainless steel long products in almost all the world markets due to
global economic downturn and fluctuating Rupee-Dollar rate. Increase in import
duty by Sri Lanka, the trade restrictions imposed by Argentina, dollar sales
embargo with Iran, anti-dumping duties levied by the USA and European countries
have reduced the exports of auto industry. Further, reduction in export incentives
has brought down the export of steel and automobiles. The Government must come
out with WTO compliant scheme and provide a level playing field to the
exporters in the world market.
INDUSTRIAL
MACHINERY DIVISION:
The division saw a
decline in the turnover for the year.
Several major
projects, particularly in the steel sector, did not pick up momentum during the
year and also some customers delayed their committed delivery schedule
requirements. Expected capital investments in the ferrous and non-ferrous
sector were deferred, resulting in lower order booking for the division. At the
end of the year, the division has orders aggregating to Rs.3860.000 Millions to
be executed over FY 2013-14 and FY 2014-15.
Lower demand is likely to adversely affect the margins of the division.
However the division initiated a number of cost reduction measures, including
design changes so as to reduce input and operating costs. A 10% reduction in
the costs has already been achieved during the year through improved design and
better sourcing. These efforts will rigorously continue during the year in
progress.
Infrastructure
work on the land acquired at Sinnar for expansion of the Industrial Machinery
division is in progress and production is expected to commence in a phased
manner during the year in progress.
INTERNAL CONTROL
SYSTEMS:
Adequate systems
for internal controls provide assurances on the efficiency of operations,
security of assets, statutory compliances, appropriate authorization, reporting
and recording of transactions. The management audit prepares regular reports on
the review of the systems and procedures. The scope of the audit activity is
broadly guided by the annual audit plan approved by the Audit Committee of
Directors. Audit reports are regularly reviewed by the top management and
corrective measures are taken.
AWARDS:
Subject has for the second time, received SKF’s Supplier Excellence Award 2012
for the quality of the wires and wire rods for tapered roller bearings. The
earlier award was received in 2009. Bajaj Auto Limited awarded subject its
Quality Silver Award for the year 2012. Somic SF Components Ltd. too gave an
award for quality and delivery.
Subject’s Steel Plant at Ginigera, Karnataka received safety awards instituted by
the Government of Karnataka. These include first prize for ‘Best Worker in
Large Scale Industry’ category for adopting Best Safe Practices in the year
2012.
STATEMENT OF AUDITED
FINANCIAL RESULTS FOR THE QUARTER AND TWELVE MONTHS ENDED MARCH 31, 2014
(Rs. In Millions)
|
|
Particulars |
Three Months Ended |
Twelve months ended |
|
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
1 |
INCOME FROM OPERATIONS |
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
|
|
a) |
Gross Sales |
7682.007 |
6787.549 |
27870.287 |
|
|
Less : Excise Duty Recovered |
766.781 |
629.235 |
2725.975 |
|
|
Net Sales |
6915.226 |
6158.314 |
25144.312 |
|
b) |
Other Operating Income |
64.126 |
41.208 |
251.338 |
|
|
Total Income from Operations |
6979.352 |
6199.522 |
25395.650 |
|
|
|
|
|
|
|
2 |
EXPENSES |
|
|
|
|
a) |
Cost of materials consumed |
3497.038 |
3570.675 |
13156.471 |
|
b) |
Purchase of Stock in Trade |
151.078 |
138.658 |
289.736 |
|
c) |
Changes in inventories of finished goods and
work-in-progress |
(401.965) |
(980.758) |
(1758.398) |
|
d) |
Stores, Spares, Components, Tools, etc. consumed |
1071.368 |
1067.231 |
4143.823 |
|
e) |
Power & Fuel |
507.731 |
542.727 |
2038.228 |
|
g) |
Employee benefits expense |
386.388 |
371.849 |
1455.267 |
|
h) |
Foreign Exchange (Gain)/Loss (net) |
23.485 |
17.919 |
390.275 |
|
i) |
Depreciation and Amortisation expenses |
174.494 |
167.052 |
670.409 |
|
j) |
Other Expenditure |
1153.478 |
945.682 |
3876.681 |
|
|
Total Expenses |
6563.095 |
5841.035 |
24262.492 |
|
3 |
Profit/(Loss) from Operations before Other Income ,
Finance Costs, & Net Exceptional income/ (Expenditure) |
416.257 |
358.487 |
1133.158 |
|
4 |
Other Income [Refer Note 2] |
43.962 |
229.727 |
333.059 |
|
5 |
Profit/(Loss) from Ordinary Activities before Finance
Costs & Net Exceptional income/ (Expenditure) |
460.219 |
588.214 |
1466.217 |
|
6 |
Less : Finance Costs (net) |
620.609 |
631.984 |
2438.896 |
|
7 |
(Loss) from ordinary activities before Net Exceptional
income / (Expenditure) |
(160.390) |
(43.770) |
(972.679) |
|
8 |
Net Exceptional Income / (Expenditure) [Refer Note 3] |
(143.003) |
(108.629) |
(254.431) |
|
9 |
Profit / (Loss) before Tax |
(303.393) |
(152.399) |
(1227.110) |
|
10 |
Less : Tax Expense [(Deferred Tax Credit) / Charge] |
(215.485) |
(19.289) |
(246.974) |
|
11 |
Profit/ (Loss) after Tax |
(87.908) |
(133.110) |
(880.136) |
|
|
|
|
|
|
|
|
Paid-up Equity Share Capital
(Face value Rs 10/- per share) |
1414.174 |
731.257 |
1414.174 |
|
|
|
|
|
|
|
|
Reserves (excluding Revaluation Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share (EPS) - Rs |
|
|
|
|
|
Basic and Diluted EPS (in Rs.) |
|
|
|
|
|
- Including exceptional items |
(1.15) |
(1.82) |
(11.54) |
|
|
- Excluding exceptional items |
0.72 |
(0.33) |
(8.20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Part - II |
|
|
|
|
|
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
|
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
Number of Shares |
3,76,74,853 |
3,33,94,687 |
3,76,74,853 |
|
|
Percentage of Shareholding |
26.64% |
45.67% |
26.64% |
|
|
|
|
|
|
|
2 |
Disclosure in
respect of pledged shares of Promoters and Promoter Group |
|
|
|
|
|
Shares held by Promoters & Promoter Group - Nos. (A) |
10,37,31,008 |
3,97,19,442 |
10,37,31,008 |
|
|
Percentage of Total Share Capital |
73.36% |
54.33% |
73.36% |
|
|
Pledged / Encumbered - No. of Shares |
1,60,90,431 |
1,43,77,431 |
1,60,90,431 |
|
|
Percentage of Total Share Capital |
11.38% |
19.66% |
11.38% |
|
|
Percentage of (A) |
15.51% |
36.20% |
15.51% |
|
|
|
|
|
|
|
|
Non Encumbered - No. of Shares |
8,76,40,577 |
2,53,42,011 |
8,76,40,577 |
|
|
Percentage of Total Share Capital |
61.98% |
34.67% |
61.98% |
|
|
Percentage of (A) |
84.49% |
63.80% |
84.49% |
|
|
|
Quarter
ended 31.03.2014 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
20 |
|
|
Disposed off during the quarter |
20 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT REVENUE (Net of Excise Duty)
(Rs. In Millions
|
|
PARTICULARS |
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
1 |
Steel |
6410.571 |
5908.937 |
23706.795 |
|
2 |
Power Generation |
109.705 |
128.517 |
454.857 |
|
3 |
Industrial Machinery |
502.931 |
299.779 |
1650.024 |
|
4 |
Road Construction |
81.175 |
0.005 |
94.066 |
|
|
Sub-total |
7104.382 |
6337.238 |
25905.742 |
|
|
Less : Inter Segment Revenue |
(125.030) |
(137.716) |
(510.092) |
|
|
Total Segment Revenue (net of Excise Duty) |
6979.352 |
6199.522 |
25395.650 |
|
|
|
|
|
|
|
|
SEGMENT RESULT |
|
|
|
|
|
|
|
|
|
|
1 |
Steel |
253.795 |
183.778 |
429.772 |
|
2 |
Power Generation |
99.286 |
116.770 |
407.856 |
|
3 |
Industrial Machinery |
102.125 |
106.096 |
467.459 |
|
4 |
Road Construction |
(16.971) |
(16.939) |
(67.303) |
|
|
Less : Inter segment margin |
(2.161) |
(0.989) |
(7.383) |
|
|
Total Segment Result |
436.074 |
388.716 |
1230.131 |
|
|
Add / (Less) : |
|
|
|
|
|
Other net un-allocable : |
|
|
|
|
|
Income |
43.963 |
229.727 |
333.060 |
|
|
Expenditure |
19.818 |
30.229 |
96.974 |
|
|
Other net un-allocable (expenditure) / income |
24.145 |
199.498 |
236.086 |
|
|
Profit /(Loss) before Finance costs |
460.219 |
588.214 |
1466.217 |
|
|
Less : Finance costs (net) |
620.609 |
631.984 |
2438.896 |
|
|
Net Exceptional - Income / (Expenditure) |
(143.003) |
(108.629) |
(254.431) |
|
|
Profit / (Loss) before tax |
(303.393) |
(152.399) |
(1227.110) |
|
|
|
|
|
|
|
|
Capital
Employed as on |
|
|
|
|
1 |
Steel |
33667.176 |
33040.708 |
33667.176 |
|
2 |
Power Generation |
462.201 |
460.300 |
462.201 |
|
3 |
Industrial Machinery |
5154.515 |
4990.276 |
5154.515 |
|
4 |
Road Construction |
1362.487 |
1380.274 |
1362.487 |
|
5 |
Unallocable (net) |
(19326.253) |
(19531.713) |
(19326.253) |
|
|
Total Net Capital Employed |
21320.126 |
20339.845 |
21320.126 |
STATEMENT OF ASSETS AND
LIABILITIES
|
SOURCES
OF FUNDS |
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1470.437 |
787.520 |
1470.437 |
|
(b) Reserves & Surplus |
19849.689 |
19202.325 |
19849.689 |
|
Sub-total
Shareholders' Funds |
21320.126 |
19989.845 |
21320.126 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
350.000 |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
11080.904 |
10362.328 |
11080.904 |
|
(b) Deferred tax liabilities
(Net) |
|
|
|
|
(c) Other long term
liabilities |
138.644 |
142.493 |
138.644 |
|
(d) long-term provisions |
356.757 |
324.816 |
356.757 |
|
Sub total Non
Current Liabilities |
11576.305 |
10829.637 |
11576.305 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
7876.395 |
8181.472 |
7876.395 |
|
(b) Trade payables |
8502.383 |
9028.654 |
8502.383 |
|
(c) Other current liabilities |
6470.241 |
6750.252 |
6470.241 |
|
(d) Short-term provisions |
42.879 |
36.692 |
42.879 |
|
Sub total Current
Liabilities |
22891.898 |
23997.070 |
22891.898 |
|
|
|
|
|
|
TOTAL |
55788.329 |
55166.552 |
55788.329 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
25362.222 |
25381.340 |
25362.222 |
|
(b) Non-current Investments |
2509.815 |
2534.761 |
2509.815 |
|
(c) Deferred tax assets (net) |
421.552 |
213.897 |
421.552 |
|
(d) Long-term Loan and Advances |
1255.944 |
1179.425 |
1255.944 |
|
(e) Other Non-current assets |
482.809 |
482.826 |
482.809 |
|
Non Current Assets |
30032.342 |
29792.249 |
30032.342 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
12351.675 |
11932.843 |
12351.675 |
|
(c) Trade receivables |
9022.347 |
10822.795 |
9022.347 |
|
(d) Cash and cash equivalents |
848.837 |
617.318 |
848.837 |
|
(e) Short-term loans and
advances |
1925.476 |
1794.154 |
1925.476 |
|
(f) Other current assets |
1607.652 |
207.193 |
1607.652 |
|
Sub total Current
Assets |
25755.987 |
25374.303 |
25755.987 |
|
|
|
|
|
|
TOTAL |
55788.329 |
55166.552 |
55788.329 |
Notes:
1 Management's response to the observations of the auditors on the financial
statements for the year ended 31.03.2014 :
a Advances due from and investments made in
Vidyavihar Containers Limited (VCL), aggregating Rs. 763.700 Millions as at
31st March 2013 now stand at Rs.671.300 Millions as at 31st March 2014 on
account of provision for diminution in the value of investments amounting to
Rs.924 Millions made during the year. After close of the year, an amount of
Rs.150.000 Millions has been realized towards the advances due from VCL. The
Company, barring unforeseen circumstances, relies upon the estimation of future
realizable values of the financial assets of VCL to recover its Exposures;
b As regards investments made in Mukand Global
Finance Limited (MGFL), aggregating Rs.262.500 Millions, the recovery is dependent
upon realization of the financial assets that MGFL stands invested into at the
close of the year and future earnings from the business activities of MGFL. The
management considers the 'Exposure' to be 'Good' and adequately covered. Any
ultimate shortfall if any, in the realization is not determinable at present.
c. The investments in and debts / advances due
from Bombay Forgings Limited (BFL), which stood at Rs.765.100 Millions as at
31.03.2013 has increased to Rs.799.000 Millions as at 31.03.2014 due to supply
on credit. Recovery towards these supplies will be made by 30th June 2014. The
management, considering its long term view on the 'Exposures' relies upon the
valuation of unencumbered fixed assets of BFL as at 31st March, 2014 which is
at Rs.703.400 Millions. It further relies upon the value of current assets and
future earnings from the ongoing business of BFL. The management considers the
balance 'Exposures' to be 'Good' at the close of the year and adequately
covered and barring unforeseen circumstances expects full realisability of the
same in future.
d. Debts / advances recoverable from Stainless
India Limited (SIL), which aggregated Rs.141.100 Millions as at 31st March
2013, has reduced to Rs.72.500 Millions as at 31.03.2014. The management relies
upon the realization from Land of SIL as at 31.03.2014. The management
considers the balance 'Exposures' to be 'Good' at the close of the year and
adequately covered and barring unforeseen circumstances expects full
realisability of the same in future.
e. The Company in previous years executed road
construction projects in the state of Uttar Pradesh with National Highway
Authority of India (NHAI) along with Centrodorstroy (CDS), Russia. The exposure
on this account as at 31.03.2013 aggregated Rs.1416.800 Millions and is now at
Rs.1347.800 Millions as at 31.03.2014. The outcome of the Road Construction
activity cannot be estimated with certainty at present. During the year further
claims amounting to Rs.609.500 Millions have been raised taking the amount of
total claims to Rs.2252.800 Millions (amount as at 31.03.2013 Rs.1643.300
Millions). Bulk of these claims are now being processed from the level of
consulting engineers in the previous year at the level of Tribunal. It is the
opinion of the management that in view of the substantially large claims
aggregating Rs.2252.800 Millions as at 31.03.2014 of CDS for incremental jobs
executed, escalations and time over-runs to be settled progressively over a
period of 2 to 3 years, losses currently expected are already recognized till
the close of the year.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10442545 |
17/07/2013 |
750,000,000.00 |
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON
HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020,
INDIA |
B81895773 |
|
2 |
10396621 |
31/12/2012
* |
500,000,000.00 |
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON
HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020,
INDIA |
B68239839 |
|
3 |
10389398 |
09/11/2012 |
80,000,000.00 |
WINRO
COMMERCIAL (INDIA) LIMITED |
209/210,
ARCADIA BUILDING, 2ND FLOOR, PLOT NO. 195, NARIMAN POINT, MUMBAI, MAHARASHTRA
- 400021, INDIA |
B62910583 |
|
4 |
10384912 |
22/10/2012 |
370,000,000.00 |
SREI
EQUIPMENT FINANCE PRIVATE LIMITED |
'VISHWAKARMA',
86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B61470894 |
|
5 |
10379885 |
10/10/2012
* |
500,000,000.00 |
HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON
HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020,
INDIA |
B61366357 |
|
6 |
10352896 |
15/04/2012 |
250,000,000.00 |
SREI
EQUIPMENT FINANCE PRIVATE LIMITED |
'VISHWAKARMA',
86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B38653804 |
|
7 |
10353101 |
15/04/2012 |
250,000,000.00 |
SREI
EQUIPMENT FINANCE PRIVATE LIMITED |
'VISHWAKARMA',
86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B38654703 |
|
8 |
10345594 |
03/04/2012 |
250,000,000.00 |
BAJAJ
FINANCE LIMITED |
4TH FLOOR,
BAJAJ FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE,
MAHARASHTRA - 411014, INDIA |
B36301315 |
|
9 |
10303605 |
01/08/2011 |
175,000,000.00 |
BAJAJ
FINANCE LIMITED |
4TH FLOOR,
BAJAJ FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE,
MAHARASHTRA - 411014, INDIA |
B19338664 |
|
10 |
10273919 |
16/06/2011
* |
800,000,000.00 |
EXPORT
IMPORT BANK OF INDIA |
21 FLOOR,
CENTRE ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA -
400005, INDIA |
B14758445 |
|
11 |
10249773 |
23/10/2010 |
350,000,000.00 |
CORPORATION
BANK |
LARGE
CORPORATE BRANCH, 301-302, EAGLES FLIGHT, SUREN ROAD, ANDHERI (E), MUMBAI,
MAHARASHTRA - 400093, INDIA |
A97753776 |
|
12 |
10193562 |
28/08/2013
* |
2,750,000,000.00 |
CENTRAL
BANK OF INDIA |
CORPORATE
FINANCE BRANCH, CHANDER MUKHI BUILDING, |
B82931536 |
|
13 |
10163749 |
05/08/2009
* |
1,000,000,000.00 |
CENTRAL
BANK OF INDIA |
CHANDERMUKHI,
NARIMAN POINT, MUMBAI, MAHARASHTRA |
A67443333 |
|
14 |
10153984 |
22/06/2010
* |
234,214,817.00 |
BAJAJ
AUTO FINANCE LIMITED |
AKURDI
PUNE-, MUMBAI - PUNE ROAD, PUNE, MAHARASHTRA - 411035, INDIA |
A87782009 |
|
15 |
10024169 |
16/06/2007
* |
500,000,000.00 |
DENA
BANK |
C-10,
G BLOCK, BANDRA KURLA COMLEX, BANDRA(E), MUMBAI, MAHARASHTRA - 400051, INDIA |
A18223248 |
|
16 |
90236515 |
07/02/2006 |
100,000,000.00 |
INFRASTRUCTURE
LEASING & FINANCIAL SERVICES LIMITE |
PLOT
C-22;BANDRA KURLA COMPLEX, BANDRA, MUMBAI, MAHARASHTRA, INDIA |
- |
|
17 |
90232897 |
16/12/2005 |
354,300,000.00 |
CANARA
BANK |
CANARA
BANK BUILDING, 2ND/3RD FLOOR; ADI MARZBAN |
- |
|
18 |
90236490 |
16/12/2005 |
730,100,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
IDBI
TOWER; 5TH FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA |
- |
|
19 |
80065070 |
11/09/2004 |
3,000,000,000.00 |
THE
WESTERN INDIA TRUSTEE & EXECUTOR COMPANY LIMITED |
161,
MITTAL COURT-C JAMNALAL BAJAJ MARG, NARIMAN |
- |
|
20 |
80005610 |
05/03/2013
* |
11,310,000,000.00 |
DENA
BANK |
C-10,
G-BLOCK, CORPORATE BUSINESS BRANCH, BANDRA |
B71068076 |
* Date of charge modification
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Railway Siding
·
Buildings and Roads
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
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 records 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.60.00 |
|
|
1 |
Rs.102.72 |
|
Euro |
1 |
Rs.81.60 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VRN |
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 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.