MIRA INFORM REPORT
|
Report Date : |
12.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
SATHAVAHANA ISPAT LIMITED |
|
|
|
|
Registered
Office : |
314, Sri Ramakrishna Towers, Nagarjuna Nagar, Hyderabad – 500873, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
08.11.1989 |
|
|
|
|
Com. Reg. No.: |
01-010654 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 384.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27109TG1989PLC010654 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the Manufacturer of Pig Iron, Metallurgical Coke
with Co-generation of Power. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. The rating reflects company’s moderate financial risk profile marked
by huge external borrowing taken by the company and loss that company has
incurred from its operational activities during financial year 2014. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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: “BBB-“
(Suspended) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
07.01.2014 |
|
|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: “A3“ (Suspended)
|
|
Rating Explanation |
Moderate degree of safety and high credit
risk. |
|
Date |
07.01.2014 |
Reason for Suspention: Not furnished information
required by CARE.
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
|
Name : |
Mr. Krishna Rao |
|
Designation : |
Finance Department |
|
Contact No.: |
91-40-23730813 |
|
Date : |
10.06.2014 |
LOCATIONS
|
Registered Office : |
314, Sri Ramakrishna Towers, Nagarjuna Nagar, Hyderabad – 500873, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23730813 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
|
|
|
Head / Corporate Office: |
505, Divyashakti Complex, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23730812 / 813 / 814 |
|
Fax No.: |
91-40-23730566 |
|
|
|
|
Factory 1: |
Haresamudram Village, Bommanahal Mandal, Ananthapur District, Andhra Pradesh, India |
|
|
|
|
Factory 2: |
Kudithini Village, Korugodu Road, Bellary District, Karnataka, India |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. K. Thanu Pillai |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A. S. Rao |
|
Designation : |
Executive Vice Chairman |
|
|
|
|
Name : |
Mr. Khaja Ruknuddin |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Syed Anis Hussain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N. Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. Naresh Kumar |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. K. V. Krishna Rao |
|
Designation : |
Chief Financial Officer and Company Secretary |
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 |
||
|
|
|
|
|
|
12090090 |
23.75 |
|
|
4200000 |
8.25 |
|
|
16290090 |
32.00 |
|
|
|
|
|
|
2520000 |
4.95 |
|
|
2520000 |
4.95 |
|
Total shareholding of
Promoter and Promoter Group (A) |
18810090 |
36.95 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
127400 |
0.25 |
|
|
12800 |
0.03 |
|
|
9980000 |
19.61 |
|
|
10120200 |
19.88 |
|
|
|
|
|
|
1517745 |
2.98 |
|
|
|
|
|
|
7549618 |
14.83 |
|
|
6580350 |
12.93 |
|
|
6321997 |
12.42 |
|
|
2800 |
0.01 |
|
|
276925 |
0.54 |
|
|
5700000 |
11.20 |
|
|
342272 |
0.67 |
|
|
21969710 |
43.16 |
|
Total Public
shareholding (B) |
32089910 |
63.05 |
|
Total (A)+(B) |
50900000 |
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) |
50900000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the Manufacturer of Pig Iron, Metallurgical Coke
with Co-generation of Power. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||||||
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|
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Bankers : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P.V.R.K. Nageswara Rao and Company Chartered Accountants |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38400000 |
Equity Shares |
Rs.10/- each |
Rs. 384.000
Millions |
|
|
|
|
|
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 |
384.000 |
364.300 |
346.000 |
|
(b) Reserves & Surplus |
1532.737 |
1412.243 |
2115.222 |
|
(c) Money
received against share warrants |
0.000 |
29.550 |
57.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
1916.737 |
1806.093 |
2518.222 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
1915.018 |
1260.676 |
1358.070 |
|
(b) Deferred tax
liabilities (Net) |
206.102 |
170.013 |
239.775 |
|
(c)
Other long term liabilities |
84.299 |
64.534 |
32.816 |
|
(d)
long-term provisions |
17.930 |
21.359 |
17.238 |
|
Total
Non-current Liabilities (3) |
2223.349 |
1516.582 |
1647.899 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
3399.273 |
3673.761 |
618.478 |
|
(b)
Trade payables |
2125.191 |
3150.003 |
1844.162 |
|
(c)
Other current liabilities |
843.100 |
1062.177 |
627.055 |
|
(d)
Short-term provisions |
10.150 |
0.747 |
77.707 |
|
Total
Current Liabilities (4) |
6377.714 |
7886.688 |
3167.402 |
|
|
|
|
|
|
TOTAL |
10517.800 |
11209.363 |
7333.523 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
3740.263 |
3462.607 |
2777.365 |
|
(ii)
Intangible Assets |
0.807 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
1115.971 |
529.983 |
685.359 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(v) Expenditure during construction
period pending |
143.500 |
40.130 |
51.290 |
|
(b)
Non-current Investments |
1.771 |
1.184 |
1.195 |
|
(c)
Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
193.855 |
109.594 |
204.910 |
|
(e)
Other Non-current assets |
90.664 |
94.581 |
86.758 |
|
Total
Non-Current Assets |
5286.831 |
4238.079 |
3806.877 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
50.022 |
0.000 |
|
(b)
Inventories |
2547.181 |
3475.436 |
2188.931 |
|
(c)
Trade receivables |
1324.025 |
1321.668 |
486.926 |
|
(d)
Cash and cash equivalents |
1114.993 |
1779.007 |
774.571 |
|
(e)
Short-term loans and advances |
198.696 |
314.358 |
51.576 |
|
(f)
Other current assets |
46.074 |
30.793 |
24.642 |
|
Total
Current Assets |
5230.969 |
6971.284 |
3526.646 |
|
|
|
|
|
|
TOTAL |
10517.800 |
11209.363 |
7333.523 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
7513.607 |
6336.388 |
6786.952 |
|
|
Other Income |
128.454 |
120.604 |
98.096 |
|
|
TOTAL
(A) |
7642.061 |
6456.992 |
6885.048 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
5960.513 |
5809.086 |
5443.054 |
|
|
Purchases of Stock-in-Trade |
30.491 |
0.000 |
0.000 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(89.039) |
(94.264) |
(429.271) |
|
|
Employees benefits expense |
144.267 |
142.320 |
135.166 |
|
|
Other expenses |
590.383 |
837.198 |
501.949 |
|
|
TOTAL
(B) |
6636.615 |
6694.340 |
5650.898 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
1005.446 |
(237.348) |
1234.150 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
715.019 |
433.440 |
276.148 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
290.427 |
(670.788) |
958.002 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
232.506 |
198.999 |
167.721 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
57.921 |
(869.787) |
790.281 |
|
|
|
|
|
|
|
Less |
TAX
(H) |
35.927 |
(75.308) |
224.875 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H)
(I) |
21.994 |
(794.479) |
565.406 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(96.320) |
698.159 |
455.136 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
250.000 |
|
|
Dividend |
0.000 |
0.000 |
62.280 |
|
|
Tax on Dividend |
0.000 |
0.000 |
10.103 |
|
|
BALANCE
CARRIED TO THE B/S |
(74.326) |
(96.320) |
698.159 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
4656.712 |
4242.960 |
4383.320 |
|
|
Components and Stores parts |
1.035 |
0.121 |
0.101 |
|
|
Capital Goods |
522.619 |
324.594 |
1.133 |
|
|
TOTAL
IMPORTS |
5180.366 |
4567.675 |
4384.554 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
0.57 |
(22.96) |
16.81 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.29 |
(12.30) |
8.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.77 |
(13.73) |
11.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.63 |
(8.18) |
11.98 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
(0.48) |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.77 |
2.73 |
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82 |
0.88 |
1.11 |
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 |
346.000 |
364.300 |
384.000 |
|
Reserves & Surplus |
2115.222 |
1412.243 |
1532.737 |
|
Money received against share
warrants |
57.000 |
29.550 |
0.000 |
|
Net
worth |
2518.222 |
1806.093 |
1916.737 |
|
|
|
|
|
|
long-term borrowings |
1358.070 |
1260.676 |
1915.018 |
|
Short term borrowings |
618.478 |
3673.761 |
3399.273 |
|
Total
borrowings |
1976.548 |
4934.437 |
5314.291 |
|
Debt/Equity
ratio |
0.785 |
2.732 |
2.773 |
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 |
6786.952 |
6336.388 |
7513.607 |
|
|
|
(6.639) |
18.579 |
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 |
6786.952 |
6336.388 |
7513.607 |
|
Profit |
565.406 |
(794.479) |
21.994 |
|
|
8.33% |
(12.54)% |
0.29% |
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Deferred payment liabilities |
38.487 |
71.138 |
|
Less: Current maturities of long term debt |
(38.487) |
(32.651) |
|
|
|
|
|
Short term
borrowings |
|
|
|
Loans and advance from related parties |
8.800 |
8.800 |
|
Loans from bodies |
150.000 |
0.000 |
|
|
|
|
|
Total |
158.800 |
47.287 |
CASE DETAILS
|
ITTA 307 / 2008 |
ITTASR 2923 / 2007 |
CASE IS:PENDING |
|
PETITIONER |
RESPONDENT |
|
|
THE COMMISSIONER OF INCOME-TAX - III, HYDERABAD |
VS |
M/S. SATHAVAHANA ISPAT LTD, AMEERPET, HYDERABAD |
|
PET.ADV. : NARASIMHA SARMA |
RESP.ADV. : |
|
|
SUBJECT: U/Sec. 143 Assessment |
DISTRICT: HYDERABAD |
|
FILING DATE: 31-12-2007 |
POSTING STAGE : FOR ADMISSION |
|
|
REG. DATE : 24-10-2008 |
LISTING DATE : 05-12-2008 |
STATUS : ADMIT |
|
HON'BLE JUDGE(S): |
GODA RAGHURAM |
SANJAY KUMAR |
FINANCIAL RESULTS:
The Directors report that the performance of the Company during the year is satisfactory as the Company is able to maintain its sales trend despite capital shut down of Blast Furnace; slackening demand and general slowdown in the economy. Although the Company was able to maintain the sales trend, yet the profitability has not improved due to lower margins; high interest costs and adverse foreign exchange fluctuations However the Company is successfully able to stop the loss and return to its profitability track record despite adverse economic conditions. The gross revenue from operations at Rs. 8042.717 millions is higher as compared to previous year's revenue of Rs. 6885.378 millions. The year ended with a Profit before tax of Rs. 57.921 millions as against Loss before tax of Rs. 869.786 millions in the previous year. Accordingly, the earnings per share accounted for at Rs.0.059 million as compared with Loss per share of Rs.2.260 millions in the previous year.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Company is engaged in the manufacture and sale of Pig Iron and also Metallurgical Coke- an input material for Pig Iron, thus operates in the iron and steel industry, which is considered as core sector.
The Company is using mini Blast Furnace Technology. The Company has modernised the Blast Furnace by Sino-Steel technology for Pig Iron making. The Company uses the Anshan technology, sourced from P.R.China for Metallurgical Coke making.
Pig Iron is of two grades - basic grade and foundry grade. Basic grade is used in the manufacture of steel and whereas foundry grade is used for making castings. Basic grade is produced mainly by the Integrated Steel Plants (ISPs) for captive consumption in the manufacture of steel and exports. Part of the production is also diverted to the domestic market. Foundry grade is mainly used for castings and is produced by the mini Blast Furnace units.
Pig Iron is the basic raw material for most of the engineering products and construction industry. Pig Iron is also a raw material for foundry and engineering industry also. With the significant growth in the main user industries like automobiles, construction, foundries, the demand for Iron and Steel has increased significantly. The total production of Pig Iron in India has increased from 1.59 Million tons in 1991-92 to the present level of 6.110 million tons in 2012-13. The production of Pig Iron as per statistics (provisional) released by the Joint Plant Committee (JPC) attached to the Ministry of Steel for the financial year 2012-13 is at 6.1 million tons as against 5.37million tons in the previous year, registering a comfortable growth. The setbacks on raw material front mainly in the form of high rise in costs and supply constraints; competition from the Integrated Steel Plants and continued financial crisis in the European and Western economies resulted in the subdued performance of Pig Iron industry.
Metallurgical Coke is the key input material for Iron making. The Company has integrated itself backward for this key input material. The surplus Metallurgical Coke production from this facility is being sold in the nearby market. The Company also is operating a Co-generation Power plant where the surplus power after meeting the captive needs is being sold to third parties.
OUTLOOK:
The outlook for the Iron and Steel industry is bearish in the short term considering the fact of slowdown in the global markets that stemmed due to uncertainties in Euro zone and sluggish Western markets. However in the medium to long term the outlook for Iron and Steel industry is encouraging particularly in view of the resilience exhibited by China and other emerging economies in the Iron and Steel production despite moderated growths and some improvement in the US economy in the recent past. The Iron and Steel prices as also the steel raw materials have bottomed out in the recent past and there is stiff resistance for further corrections which means going forward the industry would move only in positive direction. The outlook for the Indian Iron and Steel industry appears to be encouraging following the slew of measures of various regulatory authorities like softening anti inflationary policy measures, Government's effort to tame both current and fiscal deficits apart from initiating steps to boost the industrial output, freeing of mining of Iron Ore in the Bellary-Hospet belt etc. It is expected that the benefits of these measures would flow in the near term.
The medium to long term outlook for the Indian Pig Iron industry appears to be positive and in the short term the outlook in line with steel industry is bearish. The volatile raw material prices and heavy dependence on the imported Coking Coal I Metallurgical Coke; mismatch in the sales realization and raw material prices and Rupee depreciation are cause for concern for the industry. The Company is striving hard to sustain its growth path by strategies in the form of backward and forward integration which upon completion would strengthen the Company financially.
AUDITED
FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2014
(Rs. In Millions)
|
Sr. No. |
Particulars
|
Quarter
Ended |
Quarter
Ended |
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
|
Income from operations |
|
|
|
|
|
Net Sales/Income from Operations |
1742.839 |
2304.120 |
9380.696 |
|
|
Other operating income |
0.005 |
0.000 |
0.007 |
|
|
Total Income from Operations (Net) |
1742.844 |
2304.120 |
9380.703 |
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
Cost of materials consumed |
1829.791 |
1742.257 |
6740.982 |
|
|
Purchase of stock in trade |
0.000 |
0.000 |
729.027 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(374.086) |
172.080 |
535.307 |
|
|
Employee benefits expenses |
51.222 |
47.020 |
181.490 |
|
|
Depreciation and amortization expenses |
59.157 |
47.379 |
231.751 |
|
|
Foreign exchange fluctuations |
0.000 |
0.000 |
356.391 |
|
|
Other expenses |
158.273 |
153.065 |
556.164 |
|
|
Total Expenses |
1724.357 |
2161.801 |
9331.112 |
|
|
|
|
|
|
|
|
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
18.487 |
142.319 |
49.591 |
|
|
Other Income |
239.071 |
172.237 |
88.476 |
|
|
Profit
from Ordinary Activities before Finance Cost and Exceptional Items (3+4) |
257.558 |
314.556 |
138.067 |
|
|
Finance Cost |
|
|
|
|
|
Interest & Other Borrowing
Cost |
98.480 |
149.306 |
504.069 |
|
|
Net Loss on Foreign Currency
Transaction & Translation |
11.449 |
64.995 |
178.084 |
|
|
Profit
From Operations after Other Income, Interest and Exceptional Items (5-6) |
147.629 |
100.255 |
(544.056) |
|
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
|
Profit
/(Loss) from ordinary activities before tax (7-8) |
147.629 |
100.255 |
(544.056) |
|
|
Tax Expense |
36.428 |
13.170 |
36.211 |
|
|
Net
Profit/ (Loss) from ordinary activities after tax (9-10) |
111.201 |
87.085 |
(580.267) |
|
|
Extraordinary item |
0.000 |
0.000 |
0.000 |
|
|
Net
Profit/ (Loss) for the period (11-12) |
111.201 |
87.085 |
(580.267) |
|
|
Paid-up Equity
Share Capital (Rs. 5/- Per Share) |
509.000 |
384.000 |
509.000 |
|
|
Reserves Excluding Revaluation Reserve per Balance Sheet of
the previous accounting year |
0.000 |
0.000 |
1277.471 |
|
|
EPS before
Extraordinary items |
|
|
|
|
|
Basic |
2.78 |
2.26 |
(14.50) |
|
|
Diluted |
2.18 |
2.26 |
(14.50) |
|
|
|
|
|
|
|
|
EPS after
Extraordinary items |
|
|
|
|
|
Basic |
2.78 |
2.26 |
(14.50) |
|
|
Diluted |
2.18 |
2.26 |
(14.50) |
|
|
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
-Number of Shares |
32089910 |
221099.1 |
32089910 |
|
|
- Percentage of Shareholding |
63.05% |
57.58% |
63.05% |
|
|
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
-- |
-- |
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of Shares |
18810090 |
16290090 |
18810090 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
36.95% |
42.42% |
36.95% |
|
|
INVESTORS
COMPLAINTS |
31.03.2014 |
|
|
Pending at the Beginning of the Quarter |
Nil |
|
|
Received During the Quarter |
1 |
|
|
Disposed off During the Quarter |
1 |
|
|
Remaining unresolved at the end of the Quarter |
Nil |
|
PARTICULAR |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
|
31.12.2014 |
31.12.2013 |
31.03.2014 |
|
|
|
|
|
|
SEGMENT REVENUE |
|
|
|
|
Pig Iron |
844.554 |
702.616 |
3193.862 |
|
Metallurgical Coke with co-generation power |
1400.410 |
2092.614 |
8071.775 |
|
Total |
2244.964 |
2795.230 |
11265.637 |
|
Less: Inter segment revenue |
502.120 |
491.110 |
1884.934 |
|
Net sales /
income from operations |
1742.844 |
2304.120 |
9380.703 |
|
|
|
|
|
|
SEGMENT RESULTS |
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX AND INTEREST |
|
|
|
|
Pig Iron |
105.882 |
(55.272) |
(259.230 |
|
Metallurgical Coke with co-generation power |
156.974 |
276.152 |
180.354 |
|
Total |
262.856 |
220.880 |
(78.876) |
|
Less: i) Interest |
78.301 |
78.395 |
311.816 |
|
ii) Other Unallocable
expenditure net off |
36.926 |
42.230 |
153.364 |
|
Total profit /
(Loss) before tax |
147.629 |
100.255 |
(544.056) |
|
|
|
|
|
|
CAPITAL EMPLOYED
|
|
|
|
|
Segment Assets –
Segment Liabilities |
|
|
|
|
Pig Iron |
911.003 |
582.465 |
911.003 |
|
Metallurgical Coke with co-generation power |
990.073 |
835.462 |
990.073 |
|
Unallocated |
124.767 |
663.331 |
124.767 |
|
Total |
2025.843 |
1881.258 |
2025.843 |
STATEMENT OF ASSETS AND LIABILITIES
|
SOURCES
OF FUNDS |
31.03.2014 |
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
509.000 |
|
(b) Reserves & Surplus |
1277.471 |
|
Total
Shareholders’ Funds (1) + (2) |
1786.471 |
|
|
|
|
(3)
Non-Current Liabilities |
|
|
(a)
long-term borrowings |
3277.940 |
|
(b) Deferred tax
liabilities (Net) |
239.373 |
|
(c)
Other long term liabilities |
70.442 |
|
(d)
long-term provisions |
13.250 |
|
Total Non-current Liabilities (3) |
3601.005 |
|
|
|
|
(4) Current Liabilities |
|
|
(a)
Short term borrowings |
4276.190 |
|
(b)
Trade payables |
2577.285 |
|
(c)
Other current liabilities |
2049.854 |
|
(d)
Short-term provisions |
22.058 |
|
Total Current Liabilities (4) |
8925.387 |
|
|
|
|
TOTAL |
14312.863 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a)
Fixed Assets |
7398.820 |
|
(b)
Non-current Investments |
2.215 |
|
(c) Long-term Loan and Advances |
393.747 |
|
(d)
Other Non-current assets |
97.821 |
|
Total
Non-Current Assets |
7892.603 |
|
|
|
|
(2) Current assets |
|
|
(a)
Inventories |
1900.617 |
|
(b)
Trade receivables |
1669.216 |
|
(c)
Cash and cash equivalents |
2282.433 |
|
(d)
Short-term loans and advances |
509.319 |
|
(e)
Other current assets |
58.675 |
|
Total
Current Assets |
6420.260 |
|
|
|
|
TOTAL |
14312.863 |
Note:
Company's business consists of two Reportable segments viz., Pig iron and Metallurgical Coke with Cogeneration Power.
The above financial results for the quarter I year ended 3lsl March 2014 were reviewed by the Audit Committee and approved and taken on record at the meeting of the Board of Directors held on 30th May 2014
The utilization of proceeds of preferential issue made in the year 201314 as at 31sl March 2014 is as under: in:
The capital works on Sinter plant. Ductile iron Pipe making plant and captive thermal Power plant are in final stages of implementation and expected to be commissioned very shortly.
The loss during the year was mainly due to foreign exchange lows, high i n t d expense and subdued market conditioner.
The Company has not declared any dividend for the financial year 201314 in view of the loss and funds commitment to the ongoing project.
The figures of last quarter ended 31sl March 2014 are the balancing figures between audited is in respect of the full financial year and the puMish8d year to date figures upto the third quarter ended 31sl December 2013 of the current financial year.
The figures have been regrouped I rearranged wherever necessary so as to conform to the quarter I year ended results.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10477615 |
30/01/2014 |
1,845,000.00 |
AXIS BANK LIMITED |
5-2-183/184,ASC CENTRE, III FLOOR, RP ROAD, HYDERABAD, ANDHRA PRADESH - 500003, INDIA |
B96377866 |
|
2 |
10477613 |
30/01/2014 |
2,475,000.00 |
AXIS BANK LIMITED |
5-2-183/184,ASC CENTRE, III FLOOR, RP ROAD, HYDERABAD, ANDHRA PRADESH - 500003, INDIA |
B96377023 |
|
3 |
10464145 |
14/10/2013 |
1,920,000,000.00 |
CANARA BANK (AS A LEAD BANK OF CANARA BANK CONSORT |
PRIME CORPORATE BRANCH, 1-7-1, TSR COMPLEX, S.P.ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
B91101766 |
|
4 |
10329493 |
26/03/2012 * |
2,740,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, 1-7-1, T. S. R. TOWERS, S.P.ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
B37697653 |
|
5 |
10195197 |
26/12/2009 |
840,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, 1-7-1, T.S.R.COMPLEX, S.P.ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
A76653740 |
|
6 |
10158661 |
04/05/2009 |
5,615,415.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL |
A62545298 |
|
7 |
10191915 |
12/03/2009 |
700,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, 1-7-1, T. S. R. COMPLEX, S. |
A62617048 |
|
8 |
10120064 |
18/07/2008 |
500,000,000.00 |
CANARA BANK |
INDUSTRIAL FINANCE BRANCH, S.P.ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
A45030863 |
|
9 |
10114824 |
10/06/2008 |
370,000,000.00 |
CANARA BANK |
INDUSTRIAL FINANCE BRANCH, S.P.ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
A42890707 |
|
10 |
10077177 |
01/08/2007 |
45,000,000.00 |
CANARA BANK |
I.F.BRANCH, 7-6-1, T.S.R.COMPLEX, S.D.ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
A21181268 |
* Date of charge modification
FIXED ASSETS
- Plant and Equipments
- Furniture and Fixtures
- Office Equipment
- Vehicles
- Building
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. 59.32 |
|
|
1 |
Rs. 99.41 |
|
Euro |
1 |
Rs. 80.32 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
27 |
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.