MIRA INFORM REPORT
|
Report Date : |
16.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
CMI FPE LIMITED |
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Formerly Known
As : |
FLAT PRODUCTS EQUIPMENTS ( |
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Registered
Office : |
Mehta House, Plot No. 64, Road No. 13, MIDC Industrial Area, Marol, Andheri (East), Mumbai-400093, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
28.05.1986 |
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Com. Reg. No.: |
11-039921 |
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Capital
Investment / Paid-up Capital : |
Rs.49.378 Millions |
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CIN No.: [Company Identification
No.] |
L99999MH1986PLC039921 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMF03321D |
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PAN No.: [Permanent Account No.] |
AAACF0252G |
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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 of Cold Rolling (CR) Mills, Galvanis Lines and Associated
Equipments in |
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No. of Employees
: |
507 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. The company is continuously incurring losses however, net worth of the
company is satisfactory. General financial position of the company is normal
and acceptable for business dealing. The ratings also takes into consideration the company’s established
position in the domestic and export markets as a manufacturer of cold rolling
mills. Trade relations are reported as fair. Business is active. Payment
Terms are reported to be usually correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating=A/Negative(Outlook revised
from stable) |
|
Rating Explanation |
Adequate degree of safety. It carry low
credit risk. |
|
Date |
14.02.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating=A1 |
|
Rating Explanation |
Very strong degree of safety. It carry
lowest credit risk. |
|
Date |
14.02.2014 |
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
31-03-2014.
INFORMATION DENIED
Management Non Co-operative (91-22-66762737)
LOCATIONS
|
Registered Office / Head Office : |
Mehta House, Plot No. 64, Road No. 13, MIDC Industrial Area, Marol, Andheri (East), Mumbai-400093, |
|
Tel. No.: |
91-22-66762737 / 66762727 |
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Fax No.: |
91-22-66762237 / 66762737 / 66762738 |
|
E-Mail : |
Customer Feedback customerfeedback@cmifpe.com Jobs jobs@cmifpe.com Sales sales@cmifpe.com Investor Relations investors@cmifpe.com |
|
Website : |
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Factory 1 : |
A-84/2,3, M.I.D.C., Taloja Industrial Area, Taluka:
Panvel, Dist: Raigad Maharashtra – 410208, |
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Tel. No.: |
91-22-27403300 |
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Fax No.: |
91-22-27410664 |
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Factory 2 : |
Survey No.144/1/3, Village Rakholi, |
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Tel. No.: |
91-260-6451263 / 264 |
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Fax No.: |
91-260-2641259 |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Jean Marc Kohlgruber |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Raman M. Madhok |
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Designation : |
Director |
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Date of Birth/Age : |
52 years |
|
Qualification : |
M.S., MBA, Dip T and D |
|
Expertise : |
Vast
Experience in Human Resources, Marketing, Project Management, General
Management and Consulting |
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|
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|
Name : |
Mr. Yves Honhon |
|
Designation : |
Director |
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Name : |
Mr. D. J. Balaji Rao |
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Designation : |
Director |
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Name : |
Mr. Ravindra Nath Tandon |
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Designation : |
Director |
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Date of Birth/Age : |
72 years |
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Qualification : |
B.Sc. (M.E.) |
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Expertise : |
Vast
Experience in Steel Processing Infrastructure Development and Project
Management |
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|
|
|
Name : |
Mr. N. Sundararajan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Fabrice Orban (w.e.f. February 06, 2014) |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kumar Mutha |
|
Designation : |
Company Secretary |
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|
|
Name : |
Mr. Akash Ohri |
|
Designation : |
Chief Financial Officer |
SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Bodies Corporate |
5500 |
0.11 |
|
|
5500 |
0.11 |
|
|
|
|
|
|
3697700 |
74.89 |
|
|
3697700 |
74.89 |
|
Total shareholding of Promoter and Promoter Group (A) |
3703200 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
0.00 |
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|
4 |
0.00 |
|
|
1350 |
0.03 |
|
|
1554 |
0.03 |
|
|
|
|
|
|
133590 |
2.71 |
|
|
|
|
|
|
539781 |
10.93 |
|
|
534323 |
10.82 |
|
|
25365 |
0.51 |
|
|
25365 |
0.51 |
|
|
1233059 |
24.97 |
|
Total Public shareholding (B) |
1234613 |
25.00 |
|
Total (A)+(B) |
4937813 |
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) |
4937813 |
0.00 |
(1) Indian
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cold Rolling (CR) Mills, Galvanis Lines and Associated
Equipments in |
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Products : |
Cold Rolling Mills
and Skin Pass Mills · 4-High Cold Rolling Mills · 6-High Cold Rolling Mills · 20-High Cold Rolling Mills · Z-High / 6-High (SENDZIMIR) Mills · 4 High Skin Pass Mill · 2 High Skin Pass Mill · Aluminum Strip Mills Processing Lines · Pickling Lines · Electrolytic Cleaning Lines · Continuous Hot Dip Galvanising Lines · Electrolytic Tinning Lines · Tension Levelling Lines · Paint Coating Lines · Cut To Length Lines · Slitting Lines · Corrugating Machines · Rewinding Lines · 2-High Skin Pass Mills · 4-High Cold Rolling Mills · 4-High Skin Pass Mills · 6-High Cold Rolling Mills · Colour Coating Lines · Corrugating Machines · Cut-To-Length Lines/Sheet Shearing Lines · Non-Ox Furnace Type Galvanising Lines · Pickling Lines · Rewinding/Trimming Lines · Tension Levelling Lines · Test Category · Wet Flux Type Galvanising Lines · 20-High Cold Rolling Mills |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
·
African Countries ·
European Countries |
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Imports : |
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Products : |
Raw Material |
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Countries : |
·
USA ·
UK ·
Korea ·
African Countries ·
European Countries |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
|
Customers : |
Manufacturing, Retailers and End Users |
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No. of Employees : |
507 (Approximately) |
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Bankers : |
·
Canara Bank ·
Syndicate Bank ·
Union Bank of ·
ING Vysya Bank ·
ICICI Bank ·
HDFC Bank Limited |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
|
Tel No. : |
91-79-25782542,
43, |
|
Fax No. ; |
91-79-27582551 |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Kishore Bhatia and Associates Cost Accountants |
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|
|
|
Holding Company : |
·
Cockerill Maintenance and Ingenierie S.A. |
|
|
|
|
Fellow Subsidiaries (with whom Company has made
transactions during the year) |
·
CMI Industry Automation Private Limited ·
CMI UVK GmbH ·
CMI M+W Engineering GmbH |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs. 80.000 Millions |
|
200000 |
Preference Shares |
Rs.100/- each |
Rs. 20.00 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4937813 |
Equity Shares |
Rs.10/- each |
Rs. 49.378 Millions |
|
|
|
|
|
a)
Reconciliation
of the number of shares and amount outstanding at the beginning and at the end
of the reporting period:
|
Equity
Shares |
Number of Shares |
Rs.
In Millions |
|
Shares
outstanding at the beginning of the year |
4937813 |
49.378 |
|
Shares
issued during the year |
-- |
-- |
|
Shares
bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
4937813 |
49.378 |
b)
Terms/rights
attached to equity shares:
The
Company is having only one class of equity shares having par value of Rs. 10/-
each. Each holder of equity share is entitled to one vote per share. The
Company declares and pays dividend in Indian Rupees. The dividend, if proposed
by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.
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 the distribution of
all preferential amounts. The distribution will be in proportion of the paid up
share capital held by the shareholders.
c)
Details
of shares held by the Holding Company and their Subsidiaries:
|
Equity
Shares Equity
shares with voting rights |
Number of Shares |
|
Cockerill Maintenance and Ingenierie SA, the Holding
Company |
3697700 |
|
CMI Industry Automation Private Limited, Subsidiary
of the Holding Company |
5500 |
d)
Details
of shares held by each shareholder holding more than 5% shares:
|
Name
of Shareholder Equity shares with voting
rights |
Number of Shares |
%
holding |
|
Cockerill Maintenance and Ingenierie SA |
3697700 |
74.89% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
49.378 |
49.378 |
49.378 |
|
(b) Reserves & Surplus |
1233.571 |
1456.693 |
1466.629 |
|
(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) |
1282.949 |
1506.071 |
1516.007 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
173.143 |
230.857 |
33.333 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
105.425 |
89.899 |
143.752 |
|
(d) long-term provisions |
68.055 |
116.713 |
104.412 |
|
Total Non-current Liabilities (3) |
346.623 |
437.469 |
281.497 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
109.505 |
396.334 |
0.000 |
|
(b) Trade payables |
898.752 |
1473.919 |
615.370 |
|
(c) Other current
liabilities |
1220.892 |
1411.487 |
1653.216 |
|
(d) Short-term provisions |
154.741 |
170.988 |
166.839 |
|
Total Current Liabilities (4) |
2383.890 |
3452.728 |
2435.425 |
|
|
|
|
|
|
TOTAL |
4013.462 |
5396.268 |
4232.929 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
602.484 |
603.876 |
312.673 |
|
(ii) Intangible Assets |
10.928 |
19.430 |
15.642 |
|
(iii) Capital
work-in-progress |
59.012 |
63.546 |
153.220 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.001 |
0.001 |
|
(c) Deferred tax assets (net) |
99.199 |
61.573 |
52.250 |
|
(d) Long-term Loan and Advances |
106.594 |
164.870 |
122.361 |
|
(e) Other Non-current assets |
52.655 |
70.829 |
205.407 |
|
Total Non-Current Assets |
930.872 |
984.125 |
861.554 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
152.439 |
193.546 |
201.682 |
|
(c) Trade receivables |
1750.599 |
2640.473 |
1541.830 |
|
(d) Cash and cash
equivalents |
106.864 |
181.341 |
301.269 |
|
(e) Short-term loans and
advances |
229.020 |
333.117 |
325.581 |
|
(f) Other current assets |
843.668 |
1063.666 |
1001.013 |
|
Total Current Assets |
3082.590 |
4412.143 |
3371.375 |
|
|
|
|
|
|
TOTAL |
4013.462 |
5396.268 |
4232.929 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4428.327 |
5328.953 |
3517.970 |
|
|
|
Other Income |
155.312 |
76.172 |
58.232 |
|
|
|
TOTAL |
4583.639 |
5405.125 |
3576.202 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1500.934 |
2392.894 |
1333.948 |
|
|
|
Purchases of stock-in-trade |
1660.721 |
1414.769 |
923.844 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
2.673 |
(13.891) |
(4.279) |
|
|
|
Employee benefits expense |
428.479 |
434.022 |
380.472 |
|
|
|
Other expenses |
1100.347 |
1119.087 |
716.829 |
|
|
|
TOTAL |
4693.154 |
5346.881 |
3350.814 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
(109.515) |
58.244 |
225.388 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
67.020 |
31.470 |
17.997 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
(176.535) |
26.774 |
207.391 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
83.804 |
46.033 |
43.872 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(260.339) |
(19.259) |
163.519 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(37.217) |
(9.323) |
53.907 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
(223.122) |
(9.936) |
109.612 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
402.563 |
412.499 |
342.542 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
-- |
-- |
10.961 |
|
|
|
Dividend |
-- |
-- |
24.689 |
|
|
|
Ordinary Dividend |
-- |
-- |
-- |
|
|
|
Tax on Dividend |
-- |
-- |
4.005 |
|
|
BALANCE CARRIED
TO THE B/S |
179.441 |
402.563 |
412.499 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
990.026 |
705.219 |
752.445 |
|
|
|
Export of services |
12.001 |
17.163 |
18.700 |
|
|
TOTAL EARNINGS |
1002.027 |
722.382 |
771.145 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials, components, stores and spares |
666.686 |
822.855 |
545.170 |
|
|
|
Capital goods |
0.000 |
61.690 |
0.809 |
|
|
TOTAL IMPORTS |
666.686 |
884.545 |
545.979 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss)
Per Share (Rs.) |
(45.19) |
(2.01) |
22.20 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(4.87) |
(0.18)
|
3.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.88) |
(0.36)
|
4.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.75) |
(0.36)
|
4.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.20) |
(0.01)
|
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.22 |
0.42
|
0.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
(4.87) |
1.28
|
1.38 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
49.378 |
49.378 |
49.378 |
|
Reserves & Surplus |
1466.629 |
1456.693 |
1233.571 |
|
Net
worth |
1516.007 |
1506.071 |
1282.949 |
|
|
|
|
|
|
long-term borrowings |
33.333 |
230.857 |
173.143 |
|
Short term borrowings |
0.000 |
396.334 |
109.505 |
|
Total
borrowings |
33.333 |
627.191 |
282.648 |
|
Debt/Equity
ratio |
0.022 |
0.416 |
0.220 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
3,517.970 |
5,328.953 |
4,428.327 |
|
|
|
51.478 |
(16.901) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
3,517.970 |
5,328.953 |
4,428.327 |
|
Profit |
109.612 |
(9.936) |
(223.122) |
|
|
3.12% |
(0.19%) |
(5.04%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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
year was one of the challenging phase for the Company. The financial results
for the year under review and profitability were adversely impacted mainly due
to a provision of Rs.195.094 Millions made by the Company against a receivable
from a foreign customer, which had remained outstanding in the books of account
for over three years for several reasons. The financial results were also
impacted due to higher capital charges and depreciation associated with the
commissioning of new capacities, and also due to much lower margins on projects
under execution due to highly competitive environment.
Volatile
business environment, political uncertainty, slower expansion of the domestic
economy are impacting the fresh long-term investments and/or existing projects
under execution, which resulted in marginal growth in the order entries during
the year.
MANAGEMENT DISCUSSION
INDUSTRY
STRUCTURE AND DEVELOPMENTS
The
Company is mainly catering to the steel industry, which is an important
contributor to the Indian economy.
Globally,
steel industry has been facing many challenges with rising input costs and
persistent lower capacity utilisation primarily driven by low demand growth in
developed markets, accompanied by a structural shift in the global steel
industry to developing countries like China and India.
The
Ministry of Steel (Government of India) through National Steel Policy sets out
the Government’s vision for the future of the steel industry. The Policy
ensures sustainable development of the steel industry, provides sufficient
infrastructure and facilitates easy availability of vital inputs such as
natural resources and finance to support faster growth of the Industry.
In
spite of India adopting policies that have stimulated consumer demand and
fostered entrepreneurship, the per capita steel consumption has only increased
to around 60 kg, as against the world average of over 210 kg, and
460 kg
in China. It also highlights the potential in India for increased steel usage.
According
to the Planning Commission of India, the country’s steel production is expected
to grow by around 60 million tonnes during the 12th Five Years Plan (FYP)
(2011–12 to 2016–17).
According
to the report of the working group on steel industry for the 12th FYP, the
Indian urban population is expected to increase to 600 million by 2030 from the
current level of 400 million. The rising middle-class urban population boosts
demand for automobiles, white goods and other consumer durables leading to
higher per capita steel consumption.
Though
India is quite well integrated into the global economy, unlike most other Asian
countries, demand drivers are more domestic market and consumption led rather
than export market led. The growth over the last decade and the expected growth
of 6-8 per cent over the next few years are going to significantly grow the
consuming class.
The
policy focuses on the domestic sector but also envisages a steel industry
growing faster than domestic consumption, which will enable export
opportunities to be realised.
In
2014-15, growth in steel demand is expected to accelerate based on reform
measures aimed at narrowing the fiscal deficit, coupled with measures to
improve the foreign direct investment climate. This would further increase if
the demand for steel in rural India increases.
The
BRIC (Brazil, Russia, India and China) countries continue to play a dominant
role in the global iron and steel industry in terms of reserves, production and
consumption. The steel industry in BRIC countries is expected to see
sustainable growth over the next years.
The
Company has always believed in the long term growth potential of India and
therefore fully equipped with expanded capacities to seize growth
opportunities.
OUTLOOK
The
long-term outlook for India is positive, with investors expecting the country
to be among the world’s top three growth economies by 2020.
The
short-term slowdown does not mean a permanent shift to a lower growth
trajectory. India has strong basic fundamentals, including a high rate of
savings, an increasingly skilled labour force, a dynamic private sector with
first-rate management capabilities and increasing global competitiveness in
many areas. There are also some deficiencies, most notably in the area of
infrastructure.
However,
the Government recognizes these weaknesses and correcting them is a high
priority. Steel demand in India is expected to remain high, derived by strong
fundamentals and the sector is expected to see better investments in coming
years. Small per capita consumption will be a major growth driver and India
will need to add substantial steel capacity in coming years.
It is
envisaged that more than Rs.1500-2000 billion is expected to be invested in the
steel sector over the next 6-7 years. India became net steel exporter in
2013-14 after a gap of six years and is likely to maintain the momentum in
2014-15 as producers are looking to clock more overseas shipment to tide over
subdued domestic consumption.
While
higher exports were driven by volatility of rupee and mismatched demand-supply
situation in the country; imports were lower mainly due to slowdown in the
domestic economy.
India's
steel consumption grew by just 0.6 per cent in 2013-14, its lowest in four
years, to 73.93 million tonnes, impacted by a slower expansion of the domestic
economy and lower imports. The low growth rate in domestic steel consumption
indicated that base level demand conditions continued to be weak during
2013-14.
Recent
appreciation of rupee and falling international steel prices have forced
steelmakers to marginally cut prices of flat product like hot-rolled coil (HRC)
in order to stay competitive with cheaper imports. Steel prices across the
globe, barring the US, have remained under pressure because of excess supply.
The
overall outlook for the steel sector is positive and the demand is likely to
pick up in the coming financial year on the back of revival in economic growth
and the Governments’ measures to ease infrastructure investment rules.
India
is currently the world’s fourth largest producer of crude steel after China,
Japan, and the U.S. Major public and private sector firms are planning to
expand their capacities. Value-added products, capacity expansion, up gradation
or revamping of production processes, cost effective production, would remain
the major thrust areas of the Indian Steel producers in the recent times and
will benefit your Company as an equipment supplier.
During
the year, construction sector which accounts for around 60 per cent of the
country's total steel demand and the automobile industry which consumes 15 per
cent of the country's total steel demand, were hit by a slowdown in the
economy. However, the long-term outlook for steel demand in India is quite
robust due to increasing demand from several sectors, including automotive,
consumer durables, oil and gas, industrial machinery, real estate and
infrastructure.
Keeping
in view the economic environment in India and the Company’s domestic market as
well as its primary markets overseas, the strategy going forward would be to
facilitate proactive identification of additional needs of existing customers
and servicing these in an effective manner.
We
would also be on the lookout to forge strategic relationships with existing and
new customers in new products where we see significant potential, both in terms
of business volumes and profitability. The economic policy initiatives,
particularly those towards infrastructure development and creation of
additional capacities are expected to have a favourable impact on the Company’s
operations, going forward.
The
Taloja Plant, a “Centre of Excellence for Cold Rolling Mills”, is now fully
equipped with improved infrastructure, machines, productivity and enhanced
capacity. The Company also started fabrication facility work at Hedavali, near
Khopoli (Maharashtra).
The
Company’s short to medium term strategy would be to utilize its capacity to
produce critical components and assemblies in-house at its own workshops with
the overall objective to meet the complete spectrum of customer needs, thereby
differentiating itself from the competition.
REVIEW
OF OPERATIONS
The
financial results for the year and profitability were adversely impacted due to
mainly a provision of Rs.195.094 Millions made by the Company against the
receivable from a foreign customer, which had remained outstanding in the books
of account for over three years for several reasons. The financial results were
also impacted due to higher capital charges and depreciation associated with
the commissioning of new capacities along with much lower margins on projects
under execution due to highly competitive environment.
During
the year 2013-14, the total revenue at Rs.4583.639 Millions decreased by 15.20%
over the previous year.
The
Company recorded a loss after tax of Rs.223.122 Millions as compared to loss
after tax of Rs.9.936 Millions in the previous year. The earnings per equity
share of Rs.10 was (Rs.45.19) as against (Rs.2.01) in the previous year.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10339492 |
15/02/2012 |
300,000,000.00 |
HDFC
BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B33831249 |
|
2 |
90237236 |
11/09/2013
* |
3,300,000,000.00 |
CANARA
BANK |
PRIME
CORPORATE BRANCH - 1, MAKER TOWER, F WING, 20TH FLOOR, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B86490372 |
FIXED ASSETS:
·
Land
·
Flats
·
Building
·
Plant and Machinery
·
Furniture
·
Motor Car
·
Computers
·
Electrical Installations
·
Office Equipments
·
Computer
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.60.22 |
|
UK Pound |
1 |
Rs.102.79 |
|
Euro |
1 |
Rs.81.95 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
50 |
This score servesas 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.