MIRA
INFORM REPORT
|
Report Date : |
10.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
K I C METALIKS
LIMITED |
|
|
|
|
Registered
Office : |
Sir RNM House, 3B, Lal Bazar Street, 4th Floor, Room No. 2,
Kolkata – 700001, West Bengal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
26.08.1986 |
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|
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Com. Reg. No.: |
21-041169 |
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Capital
Investment / Paid-up Capital : |
Rs.476.992 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L01409WB1986PLC041169 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALK03297A |
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|
|
|
PAN No.: [Permanent Account No.] |
AABCK3058J |
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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
: |
Manufacturing of Pig Iron and Trading of its Raw Material. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. The rating takes into consideration company’s improved financial risk
profile and sound profitability levels of the company. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered for business dealings at usual trade
terms and condition. |
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities BB+ |
|
Rating Explanation |
Inadequate degree of safety and high credit
risk. |
|
Date |
September 16, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
September 16, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
MANAGEMENT NON CO-OPERATIVE (91-33-30688681)
LOCATIONS
|
Registered Office : |
Sir RNM House, 3B, Lal Bazar Street, 4th Floor, Room No. 2, Kolkata – 700001, West Bengal, India |
|
Tel. No. : |
91-33-3068 8681 / 83 |
|
Fax No. : |
91-33-4001 9636 |
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E-Mail : |
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|
Website : |
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Factory 1 : |
VIII, Raturia, Angadpur Durgapur - 713215 West Bengal, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Radhey Shyam Jalan |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Barun Kumar Singh |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. L. N. Sharma |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
11.08.1953 |
|
Qualification : |
B. Com (Honours) |
|
Date of Appointment : |
17.09.2012 |
|
|
|
|
Name : |
Mr. Suresh Kumar Singhal |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Mukesh Bengai |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Ms. Ruchika Dhanuka |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3717971 |
52.37 |
|
|
3717971 |
52.37 |
|
|
|
|
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3717971 |
52.37 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
2800817 |
39.45 |
|
|
|
|
|
|
452993 |
6.38 |
|
|
123498 |
1.74 |
|
|
3921 |
0.06 |
|
|
3721 |
0.05 |
|
|
200 |
0.00 |
|
|
3381229 |
47.63 |
|
Total Public shareholding (B) |
3381229 |
47.63 |
|
Total (A)+(B) |
7099200 |
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) |
7099200 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Pig Iron and Trading of its Raw Material. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
·
State Bank of India ·
State Bank of Hyderabad |
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Facilities : |
NOTE: LONG TERM
BORROWINGS The Term loan from bank are repayable in 20 equal quarterly installments of Rs. 27.500 millions each commencing from June 2012. The rate of interest on Term loan from Banks varies from 14.40% to 14.90% and secured by way of first charge on entire fixed assets of the Company and second charge by way of hypothecation on the entire stocks of inventory, receivables, bills and other chargeable current assets of the Company (both present and future) and corporate guarantee of Promoter Company and personal guarantee of Promoter Director. Deferred payment liability are secured by way of hypothecation of respective assets, acquired on deferred payment credit basis. SHORT TERM
BORROWINGS The working capital loans are secured by way of first charge by way of hypothecation of current assets of the Company comprising stock of raw materials, stock-in-process, finished goods, stores and book debts, both present and future and second charge on fixed assets of the Company and corporate guarantee of promoter company and personal guarantee of promoter directors. |
|
Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Agarwal Maheshwari and Company Chartered Accountants |
|
Address : |
2B, Grant Lane, Kolkata – 700012 West Bengal, India |
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|
|
|
Promoter Company : |
Karni Syntex Private Limited |
CAPITAL STRUCTURE
After 27.09.2013
Authorised Capital :
Rs.1000.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 521.992
Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
75000000 |
Preference Shares |
Rs.10/- each |
Rs.750.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7099200 |
Equity Shares |
Rs.10/- each |
Rs.70.992 Millions |
|
40600000 |
7% Redeemable Non-cumulative Preference Shares |
Rs.10/- each |
Rs.406.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.476.992
Millions |
List of
Shareholder holding more than 5 percent Shares in the Company
|
Particulars |
31.03.2013 |
|
|
|
No. of shares |
% of Share Held |
|
Equity
Shares |
|
|
|
kami Syntex Private Limited |
3421712 |
48.20 |
|
Flamingo Overseas Private Limited |
610000 |
8.59 |
|
|
|
|
|
7% Redeemable
Non-cumulative Preference Shares |
|
|
|
Shivsai Tieup Private Limited |
6650000 |
16.38 |
|
Stardox Vinimoy Private Limited |
3070000 |
7.56 |
|
Ushita Trading and Agencies Private Limited |
2530000 |
6.23 |
|
Super Dealtrade Private Limited |
2400000 |
5.91 |
|
Divya Electronics Private Limited |
2900000 |
7.14 |
|
Potential Electricals and Electronics Private Limited |
2950000 |
7.27 |
|
Hariom Suppliers Private Limited |
-- |
-- |
Rights, Preference
and restriction attached to Shares
a) The Equity Shares of the Company have par value of Rs. 10 per share. Each shareholders is eligible for one vote per share held. All these Equity Shares have same right with respect to payment of dividend, repayment of capital and voting. In the events of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of preferential amounts, in proportion to the shareholding.
b)
The Company has 7% Redeemable Non-Cumulative
Preference Shares having a nominal value of Rs. 10 per share. The Preference
Shareholders shall have the right to vote on any resolution of the Company
directly affecting their rights. The Preference Shares would be redeemable
within nineteenth year (revised from earlier twelth year) from the date of
allotment however, it may be redeemed at any time after five years from the
date of allotment at the option of the company, subject to approval from statutory
bodies and financial institutions, if any. In the case of liquidation, the
Preference shareholder will be preferred over the Equity shareholders for the
distribution of remaining assets of the Company.
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 |
476.992 |
313.492 |
216.492 |
|
(b) Reserves & Surplus |
405.827 |
383.714 |
331.026 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
66.900 |
|
Total
Shareholders’ Funds (1) + (2) |
882.819 |
697.206 |
614.418 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
433.118 |
543.926 |
311.406 |
|
(b) Deferred tax liabilities (Net) |
73.408 |
57.909 |
41.419 |
|
(c) Other long term liabilities |
0.000 |
106.867 |
25.684 |
|
(d) long-term provisions |
3.734 |
3.221 |
2.089 |
|
Total Non-current Liabilities (3) |
510.260 |
711.923 |
380.598 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
168.504 |
339.393 |
1400.962 |
|
(b) Trade payables |
1249.624 |
1106.685 |
89.782 |
|
(c) Other current
liabilities |
269.839 |
201.954 |
220.443 |
|
(d) Short-term provisions |
11.061 |
50.049 |
45.314 |
|
Total Current Liabilities (4) |
1699.028 |
1698.081 |
1756.501 |
|
|
|
|
|
|
TOTAL |
3092.107 |
3107.210 |
2751.517 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1236.906 |
1359.395 |
471.947 |
|
(ii) Intangible Assets |
9.371 |
11.714 |
0.000 |
|
(iii) Capital
work-in-progress |
19.038 |
1.480 |
741.941 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
5.224 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1265.315 |
1372.589 |
1219.112 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1371.960 |
1192.608 |
868.661 |
|
(c) Trade receivables |
139.459 |
279.306 |
393.153 |
|
(d) Cash and cash equivalents |
40.721 |
59.972 |
21.776 |
|
(e) Short-term loans and
advances |
28.823 |
47.508 |
76.820 |
|
(f) Other current assets |
245.829 |
155.227 |
171.995 |
|
Total Current Assets |
1826.792 |
1734.621 |
1532.405 |
|
|
|
|
|
|
TOTAL |
3092.107 |
3107.210 |
2751.517 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4807.958 |
3425.281 |
2615.453 |
|
|
|
Other Income |
198.199 |
60.082 |
50.329 |
|
|
|
TOTAL |
5006.157 |
3485.363 |
2665.782 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1520.163 |
1244.989 |
952.796 |
|
|
|
Purchases of Stock-in-Trade |
2855.493 |
1645.245 |
463.096 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
15.260 |
232.206 |
768.083 |
|
|
|
Employees benefits expense |
93.040 |
56.124 |
42.246 |
|
|
|
Extraordinary Item |
30.080 |
0.043 |
0.177 |
|
|
|
Captive Consumption of Cement |
0.000 |
(2.013) |
(4.546) |
|
|
|
Other expenses |
187.577 |
180.087 |
135.124 |
|
|
|
TOTAL |
4701.613 |
3356.681 |
2356.976 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
304.544 |
128.682 |
308.806 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
165.217 |
37.323 |
88.154 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
139.327 |
91.359 |
220.652 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
97.850 |
42.052 |
41.196 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
41.477 |
49.307 |
179.456 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
19.364 |
16.619 |
27.651 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
22.113 |
32.688 |
151.805 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
156.326 |
123.638 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
178.439 |
156.326 |
123.638 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3168.343 |
70.035 |
0.000 |
|
|
|
Capital Assets |
0.000 |
8.044 |
146.599 |
|
|
TOTAL IMPORTS |
3168.343 |
78.079 |
146.599 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
3.11 |
4.60 |
22.26 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.44 |
0.94 |
5.69 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.86 |
1.44 |
6.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.35 |
1.59 |
8.93 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.07 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.68 |
1.27 |
2.79 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.08 |
1.02 |
0.87 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
216.492 |
313.492 |
476.992 |
|
Reserves & Surplus |
331.026 |
383.714 |
405.827 |
|
Share Application money pending
allotment |
66.900 |
0.000 |
0.000 |
|
Net
worth |
614.418 |
697.206 |
882.819 |
|
|
|
|
|
|
long-term borrowings |
311.406 |
543.926 |
433.118 |
|
Short term borrowings |
1400.962 |
339.393 |
168.504 |
|
Total
borrowings |
1712.368 |
883.319 |
601.622 |
|
Debt/Equity
ratio |
2.787 |
1.267 |
0.681 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2615.453 |
3425.281 |
4807.958 |
|
|
|
30.963 |
40.367 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2615.453 |
3425.281 |
4807.958 |
|
Profit |
151.805 |
32.688 |
22.113 |
|
|
5.80% |
0.95% |
0.46% |
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 |
No |
|
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 |
----- |
|
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 |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
From Others |
102.419 |
93.577 |
|
|
|
|
|
Total |
102.419 |
93.577 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10312596 |
22/09/2011 |
490,000,000.00 |
STATE BANK OF INDIA (LEAD BANK) |
Commercial Branch, Kolkata, 24, Park Street, Kolkata, West Bengal -
700016, INDIA |
B23359789 |
|
2 |
10312599 |
22/09/2011 |
550,000,000.00 |
STATE BANK OF INDIA (LEAD BANK) |
Commercial Branch, Kolkata, 24, Park Street, Kolkata, West Bengal -
700016, INDIA |
B23360456 |
|
3 |
10299853 |
30/06/2011 |
3,697,000.00 |
TATA CAPITAL LIMITED |
ONE FORBES, DR V B GANDHI MARG, FORT, MUMBAI, Maharashtra - 400001,
INDIA |
B17939802 |
|
4 |
90254279 |
23/12/2003 |
1,800,000.00 |
I & I FINANCE LTD. |
3 B SHAKPEAR SARANI, KOLKATA, West Bengal - 700071, INDIA |
- |
|
5 |
90253933 |
22/09/2011 * |
1,040,000,000.00 |
STATE BANK OF INDIA (LEAD BANK) |
Commercial Branch, Kolkata, 24, Park Street, Kolkata, West Bengal -
700016, INDIA |
B23378102 |
OPERATIONS
The Indian economy
showed moderate growth during the financial year and faced turbulent business
environment, rising inflationary pressures, widening current account deficit
and adverse fluctuatians in foreign exchange. Despite these constraints and the
challenging environment, the Company achieved a good growth in its turnover.
The gross turnover of the Company has increased from Rs. 3559.300 millions in
2011-12 to Rs. 5034.100 millions in 2012-13 representing an increase of 41.44%
and the Profit before Depreciation, Exceptional items and Taxation of the
Company increased to Rs. 169.400 millions as against Rs. 91.400 millions in the previous
year, registering a growth of 85.33%.
Production of Hot
Metal was higher by 26.84% over the previous year (from 50,233 MT to 63,718
MT). Further, the production of Portland
Slag cement was 997 MT as
compared to 1,755 MT in the previous year. Decline in production of cement was
due to lower demand of the
product.
The Company’s
profit after tax for the year stood at Rs.22.100 millions compared to Rs.22.700 millions in the previous year,
registering a decline of 32.35% over last financial year. The decline was due
to higher charge of depreciation, interest cost and exceptional loss incurred
on sale of Coke Oven plant.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
ECONOMIC OVERVIEW
The global economy is yet to recover from the recessionary impact that began since the financial crisis of 2008-2009. Global economic growth dropped to almost 3% in 2012-13 as compared to growth rate of 6.7% in 2008-09, which indicates a major fall since the crisis emerged. Mature economies are still healing the scars of the 2008 2009 crisis and this slowing trend is likely to continue. But unlike in 2Q10-11 and 2011-12, emerging markets did not pick up the slack in 2012-13. Uncertainty across the regions - from the past-election 'fiscal debate' question in the U.S. ta the Chinese leadership transition and reforms in the Euro Area - will continue to have global impacts in sluggish trade and tepid foreign direct investment.
In the light of the slowdown in the global economy, the Indian economy is also adversely impacted. According to the Advance Estimates of National Income for 2012-13 released by Central Statistical Organization (CSO), India's economic growth rate this fiscal is estimated to be sharply lower at 5%, as compared ta a growth rate of 6.2% in 2011-12, on account of poor performance of manufacturing, agriculture and services sector. This means that the pace of economic expansion has slowed sharply in the second half of 2012-13, given that GDP growth in the April-September period stood at 5.4%. CSO's advance estimate lowered the growth in agriculture and allied activities to 1.8% in 2012-13, compared to 3.6% in 2011-12. Manufacturing growth is also expected to drop to 1.9% in this fiscal, from 2.7% last year. Further, the services sector including finance, insurance, real estate and business services sectors are likely to grow by 8.6% this fiscal, against 11.7% last fiscal.
GDP growth estimates in 2013-14 show that i.t is expected to grow at 5.7 56 but a recovery in growth crucially rests on drivers such as incentivizing investments, a pick-up in consumption and exports, removing structural supply-side bottlenecks, etc.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Global Steel Industry
In the early part of 2013, the key risks to the global economy - the Eurozone crisis, a hard landing for the Chinese economy, and the US fiscal cliff issue - have all stabilized considerably and they now expect a recovery in global steel demand to kick in by the second quarter of 2013-14, led by the emerging economies. Yet. The situation on the financial markets remains fragile and the Eurozone crisis is far from being solved as the recent events in Cyprus have again shown. In 2014-15, they expect a further pickup in global steel demand with the developed economies increasingly contributing to growth.
Indian Steel and Pig Iron Industry
Steel industry in India is under a stress. Domestic demand is not picking up, there is a shortage of vital raw materials as well as technical manpower, exports are drying and new projects are either halted or lagging behind the schedule. Non-availability of vital inputs like iron-ore and coking coal has put Indian iron and steel sector on back foot another important issue is market stagnation and erosion of consumer demand in the recent times. The two most important user sectors, infrastructure and auto, are not growing and this is a very big concern for the steel industry. Infrastructure needs stimulus and trigger from the government in terms of finance and funds allotment which is missing at present while the Auto industry needs soft interest rates and a growing economic climate to facilitate vehicle sale. The increase in fuel prices negatively impacted the already low market sentiments.
The Company is a part of the Steel industry belongs to the Pig lron industry and is one of the major producer of pig iron in eastern Indian region. Pig iron is the solid form of hot iron metal. Obtained by smelting iron-ore with coke. India produces around 5.5 million tonnes (MTJ of pig iron every year. Demand for pig iron is directly linked to buying interest for long steel products, used in construction, as it is the raw material for producing billets and ingots, the semi-finished steel long products.
Iron-ore and coking coal are the two major raw materials for pig iron production. Due to the iron-ore mining crisis, its purchasing costs have gone up very sharply and have added to the woes of the pig iron producers across India. High iron-ore prices are adversely impacting the margins of pig iron makers having no captive mines while integrated ones with captive mines may see some margin expansion. Persistent high cost of pig iron production and producer’s limited ability to pass on higher costs due to subdued demand from end-users industries is set to create a rampant pressure which will be higher on the producers with no captive raw material linkages.
The cost of funding working-capital requirements remains high despite the marginal reduction in Repo rate by the Reserve Bank of India in early 2012. A weaker rupee raises the financial leverage of pig iron producers as the major raw material i.e. coking coal is being imported.
As per the Global steel market review. In 2014. The demand for the pig iron will improve modestly resulting in the modest increase in capacity utilization and pig iron prices.
FUTURE OUTLOOK
A country like India has tremendous opportunity to flourish its economy and the lives of its citizens. Also, given a modest per capita steel consumption, availability of raw material and the markets, the iron and steel industry in this country has a vast potential to grow. 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.
The longer-term business environment of Pig Iron industry remains stable with a gradual move towards equilibrium. Notwithstanding multiple cost and regulatory pressures, strategic positioning with sinter and power plant as a move of backward integration coupled with stronger customer relations. remains key to mitigating downside risk and exploiting opportunities. On the cost front. Rising price of iron-ore and coking coal and railway and road freight are expected to continue to put pressure on the Company, while volumes would continue to be challenged by ease of availability of key raw materials. They remain confident that the industry will emerge stronger out of the current turmoil with a strict, robust and stable regulatory environment and they continue to remain optimistic of overcoming the current and any future obstacles.
Despite adverse events. K I C looks ahead to a hopeful early resolution of challenges. They continue to further their systemic robustness and strengthen their processes to handle future challenges.
FIXED ASSETS
œ Lease Hold Land
œ Building and Shed
œ Plant and Equipment
œ Furniture and Fixture
œ Vehicles
œ Office Equipment
œ Computers
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED
31ST
DECEMBER, 2013
|
|
|
Particulars |
Quarter Ended |
Nine
Month |
|
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1 |
Income from Operations |
|
|
|
|
|
|
a) Net Sales/Income from
Operations (net of excise duty) |
363.260 |
1132.899 |
2490.382 |
|
|
|
b) Other Operating Income |
-- |
-- |
-- |
|
|
|
Total Income from Operations (Net) |
363.260 |
1132.899 |
2490.382 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials
consumed |
43.943 |
163.946 |
641.959 |
|
|
b) |
Purchase of stock
in-trade |
315.707 |
865.233 |
1673.339 |
|
|
c) |
Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
(3.542) |
57.769 |
18.141 |
|
|
d) |
Employee benefit expenses |
18.717 |
21.349 |
60.947 |
|
|
e) |
Depreciation and
amortization expense |
20.063 |
25.425 |
70.582 |
|
|
f) |
Other expenses |
25.402 |
28.488 |
101.628 |
|
|
Total Expenses |
420.290 |
1162.237 |
2566.596 |
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
(57.030) |
(29.338) |
(76.214) |
|
4 |
Other Income |
43.463 |
50.512 |
127.671 |
|
|
5 |
|
Profit /(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
(13.567) |
21.174 |
51.457 |
|
6 |
Finance Costs |
27.204 |
19.504 |
74.707 |
|
|
7 |
|
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
(40.771) |
1.670 |
(23.250) |
|
8 |
Exceptional Items |
(31.414) |
-- |
(31.414) |
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
(72.185) |
1.670 |
(54.664) |
|
|
10 |
Tax Expense |
(3.504) |
0.333 |
-- |
|
|
11 |
Net Profit /(Loss) from
ordinary activities after tax (9-10) |
(68.681) |
1.337 |
(54.664) |
|
|
12 |
Extraordinary items (net
of tax expense) |
-- |
-- |
-- |
|
|
13 |
Net Profit /(Loss) for
the period (11-12) |
(68.681) |
1.337 |
(54.664) |
|
|
14 |
Paid up equity share
capital (Eq. shares of Rs.10/- each) |
70.992 |
70.992 |
70.992 |
|
|
15 |
Reserve excluding revaluation
reserves |
-- |
-- |
-- |
|
|
16 |
|
Earnings per share
(before/after extraordinary items) of
Rs.10/- each |
|
|
|
|
|
|
Basic and Diluted |
(9.67) |
0.19 |
(7.70) |
|
|
|||||
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
|
Public Shareholding |
|
|
|
|
|
|
- No. of Shares |
3381229 |
3381229 |
3381229 |
|
|
|
- Percentage of
Shareholding |
47.63 |
47.63 |
47.63 |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
|
- Number of shares |
Nil |
Nil |
Nil |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
-- |
-- |
-- |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
|
|
b) Non- encumbered |
|
|
|
|
|
|
- Number of shares |
3717971 |
3717971 |
3717971 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
52.37 |
52.37 |
52.37 |
|
|
Particulars |
Quarter
ended 31.12.2013 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning
of the quarter |
0 |
|
|
|
Received during the
quarter |
0 |
|
|
|
Disposed during the
quarter |
0 |
|
|
|
Remaining unresolved at
the end of the quarter |
0 |
NOTE:
1. The above Unaudited results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 14.02.2014. The same has also been reviewed by the Statutory Auditors of the Company
2. Due to shut down of MBF for Rebuilding from 15th August, 2013 to 14th December, 2013, the turnover and operating profit of the Company has been impacted adversely. The old MBF has been replaced by modernized new MBF resulting in the enhancement of existing capacity of 110000 MT p.a. to 165000 MT p.a.
3. As the Company's business activity revolves around a single primary business segment, viz, "Iron and Steel and allied product", as such the disclosure requirements of Accounting Standard - 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India are not applicable
4. Previous period figures are regrouped/ rearranged, wherever necessary to conform to current period classification
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
|
1 |
Rs.99.35 |
|
Euro |
1 |
Rs.80.62 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
43 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.