1. Summary Information
|
Country |
India |
||
|
Company Name |
MAHINDRA UGINE STEEL COMPANY LIMITED |
Principal Name 1 |
Mr. Keshub Mahindra |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Anand G. Mahindra |
|
Registration # |
11-012542 |
||
|
Street Address |
74, Ganesh Apartment, 7th Floor, Opposite Sitaladevi
Temple, Lady Jamshedji Road, Mahim, Mumbai –
400 016, Maharashtra, India |
||
|
Established Date |
19.12.1962 |
SIC Code |
-- |
|
Telephone# |
91-22-24444287 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-24458196 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Alloy Steel |
|
|
# of employees |
976 (Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.
324,825,290/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and
Promoter Group - 55.47 % Public - 44.53 % |
Banking |
State Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
52 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba
(42) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company |
-- |
Mahindra and Mahindra Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2124,300,000 |
Current Liabilities |
845,800,000 |
|
Inventories |
406,800,000 |
Long-term Liabilities |
2279,000,000 |
|
Fixed Assets |
1368,000,000 |
Other Liabilities |
234,800,000 |
|
Deferred Assets |
000 |
Total Liabilities |
3,359,600,000 |
|
Invest& other Assets |
1141,200,000 |
Retained Earnings |
1,355,900,000 |
|
|
|
Net Worth |
1,680,700,000 |
|
Total Assets |
5,040,300,000 |
Total Liab. & Equity |
5,040,300,000 |
|
Total Assets (Previous Year) |
8724,300,000 |
|
|
|
P/L Statement as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Sales |
7,663,900,000 |
Net Profit |
(337,200,000) |
|
Sales(Previous yr) |
7032,600,000 |
Net Profit(Prev.yr) |
368,900,000 |
MIRA INFORM REPORT
|
Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA UGINE STEEL COMPANY LIMITED |
|
|
|
|
Registered
Office : |
74, Ganesh Apartment, 7th Floor, Opposite Sitaladevi
Temple, Lady Jamshedji Road, Mahim, Mumbai –
400 016, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.12.1962 |
|
|
|
|
Com. Reg. No.: |
11-012542 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 324.825 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1962PLC012542 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM20210B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACM4998G |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Alloy Steel. |
|
|
|
|
No. of Employees
: |
976 (Approximately) [371 Officers and 605 Workmen] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6700000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a subsidiary of Mahindra and Mahindra Limited. It is an
established company having satisfactory rack record. The company has incurred loss from its operational activities during
the financial year 2013. However, the rating reflects strong financial and managerial support
that company receives from its parent. General financial position of the
company reported to be fair. 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry
retained its status as the favourable venture capital investors in 2013.
Pakistan has temporarily banned gold imports for the second time in six months,
as it tries to stem smuggling into India. India’s import duty on gold is 10 %
and curbs on purchases have dried up legal imports into what used to be the
world’s biggest bullion buyers. The World Gold Council puts the amount smuggled
into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed
that unclaimed bank deposits estimated to be about Rs 35000 mn be used for
education and awareness among depositors. According to the plan, deposits
that have not been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long Term Issuer Rating=A |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
25.10.2012 |
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 PARTED BY
|
Name : |
Mr. Vishal Panvelkar |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-24444287 |
|
Date : |
25.02.2014 |
LOCATIONS
|
Registered Office : |
74, Ganesh Apartment, 7th Floor, Opposite Sitaladevi
Temple, Lady Jamshedji Road, Mahim, Mumbai –
400 016, Maharashtra, India |
|
Tel. No.: |
91-22-24444287 |
|
Telefax No.: |
91-22-24458196 |
|
E-Mail : |
|
|
Website : |
|
|
Location: |
Owned |
|
|
|
|
Factory : |
Steel and Rings Jagdishnagar, Khopoli - 410 216, District Raigad, Maharashtra, India Tel. No. :
91-2192-263318 / 263347 / 262487 / 262488 / 263589 Fax No. :
91-2192-263073 / 263076 / 268502 Stampings ·
371, Takwe Road, At and Post: Kanhe, Dist.
Pune-412106, Maharashtra, India
Tel. No. : 91-2114-255289 / 294
Fax No. : 91-2114-255293 ·
Plot No. D-2, MIDC, Ambad, Nashik-422010,
Maharashtra, India
Tel. No. : 91-253-6613400 / 6613406
Fax No. : 91-253-6613409 ·
Maharajpur Road, Lalpur, Rudrapur, U.S.Nagar-263143,
Uttarakhand, India
Tel No. : 91-5944-280921 ·
Plot No.2, Sector -11, Tata Vendor Park, IIE,
Pantnagar, Rudrapur – 263 153, Uttarakhand, India Tel No.: 05944-250851 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Keshub Mahindra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Anand G. Mahindra |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Uday Gupta |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Hemant Luthra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. R. Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harsh Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Ravi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj Kumar Maheshwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv Kapoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nikhilesh Panchal |
|
Designation : |
Nominee of LIC |
|
|
|
|
Name : |
Mr. Daljit Mirchandani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Kadhao |
|
Designation : |
Company Secretary |
|
E-mail : |
relationinvestors@mahindra.com |
|
|
|
|
Name : |
Mr. Ajit Lele |
|
Designation : |
Chief Executive Officer – Stampings |
|
|
|
|
Name : |
Mr.
Sandeep Jain |
|
Designation : |
Chief
Finance Officer |
|
|
|
|
Audit Committee: |
·
Mr. Daljit
Mirchandani ·
Mr. R R Kirshnan ·
Mr. S Ravi ·
Mr. Manoj Kumar
Maheshwari ·
Mr. Sanjiv Kapoor ·
Nikhilesh Panchal |
|
|
|
|
Nomination and Remuneration Committee: |
·
Mr. Hemand Luthra ·
Mr. Sanjiv Kapoor ·
Mr. S. Ravi ·
Mr. Daljit
Mirchandani |
|
|
|
|
Investor’s Grievance Committee: |
·
Mr. Hemant Lutrha ·
Mr. S Ravi ·
Mr. Uday Gupta |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
18019489 |
55.47 |
|
|
18019489 |
55.47 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
18019489 |
55.47 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
9016 |
0.03 |
|
|
2770 |
0.01 |
|
|
1539159 |
4.74 |
|
|
18450 |
0.06 |
|
|
1569395 |
4.83 |
|
|
|
|
|
|
1561492 |
4.81 |
|
|
|
|
|
|
6346432 |
19.54 |
|
|
4794833 |
14.76 |
|
|
190888 |
0.59 |
|
|
187381 |
0.58 |
|
|
2457 |
0.01 |
|
|
1000 |
0.00 |
|
|
12893645 |
39.69 |
|
Total Public
shareholding (B) |
14463040 |
44.53 |
|
Total (A)+(B) |
32482529 |
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) |
32482529 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Alloy Steel. |
||||||||||
|
|
|
||||||||||
|
Products : |
·
Alloy, Tool and Die Steels ·
Plastic Mould Steels ·
Engineering Alloy C ·
Constructional Steels ·
Ball Bearing Steels ·
Air Craft Quality Steels ·
Offshore Oil Field Steels ·
Austenitic / Ferritic / Martensitic / Duplex /
Precipitation Hardening Stainless Steels ·
Case Carburising Steels ·
Nitriding Steels ·
Boron Steels ·
Automotive Valve Steels |
||||||||||
|
|
|
||||||||||
|
Exports : |
|
||||||||||
|
Products : |
|
||||||||||
|
Countries : |
|
||||||||||
|
|
|
||||||||||
|
Imports : |
|
||||||||||
|
Products : |
|
||||||||||
|
Countries : |
|
||||||||||
|
|
|
||||||||||
|
Terms : |
|
||||||||||
|
Selling : |
L/C and Credit (60 days /90 days) |
||||||||||
|
|
|
||||||||||
|
Purchasing : |
L/C and Credit (60 days / 90 days) |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity Per Annum |
Installed Capacity Per Annum |
Actual Production |
|
|
|
|
|
|
|
Tool, alloy and Special steel |
M/T |
180000 |
180000 |
126232 |
|
Pressed Sheet metal components and assemblies |
M/T |
66400 |
66400 |
55275 |
GENERAL INFORMATION
|
Customers : |
Wholesalers |
||||||||||||
|
|
|
||||||||||||
|
No. of Employees : |
976 (Approximately) [371 Officers and 605 Workmen] |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
|
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Solicitors : |
Khaitan and Company |
|
|
|
|
Fellow Subsidiaries : |
·
Mahindra Forgings Limited ·
Mahindra Gujarat Tractors Limited ·
Mahindra Intertrade Limited ·
Mahindra logistics Limited ·
Mahindra Gears and Transmission Private Limited ·
Mahindra Vehicle Manufacturers Limited ·
Mahindra Steel Service Centre Limited ·
Mahindra Navistar Automotives Limited ·
Mahindra BPO Services Private Limited ·
Mahindra Hinoday Industries Limited ·
Mahindra Automobile Distributors Private. Limited
·
Metalcastello S.p.A. ·
Mahindra First Choice Wheels Limited |
|
|
|
|
Subsidiary Company: |
Mahindra Sanyo
Special Steel Private Limited (Formerly Navyug
Special Steel Private Limited) |
|
|
|
|
Associate Company: |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1190.000 millions |
|
3100000 |
Redeemable Cumulative Preference shares |
Rs. 100/- each |
Rs. 310.000 millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 1500.000
millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32482529 |
Equity Shares |
Rs. 10/- each |
Rs. 324.825
millions |
|
|
|
|
|
NOTES:
(a) Reconciliation of the number of shares
outstanding at the beginning and at the end of the year: There is no movement
in the share capital of the Company during the year.
(b) Terms/rights and restrictions attached to
equity shares: The Company has only one class of equity shares having a face value of
Rs.10 per share. The rights of the equity shareholders rank pari-passu for all
matters, including dividend and each shareholder is entitled to one vote per
share. In the event of liquidation of the Company, the holders of equity shares
will be entitled to receive remaining assets of the Company, after distribution
of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.
c) Shares held by the ultimate holding Company:
|
Particular |
31.03.2013 |
31.3.2012 |
||
|
No. of Shares |
Rs. In Million |
No. of Shares |
Rs. In Million |
|
|
Mahindra and
Mahindra Limited |
16466789 |
164.700 |
16466789 |
164.700 |
(d) Shares held by each shareholder holding more
than 5% shares, specifying the number of shares held:
|
Particular |
31.03.2013 |
31.3.2012 |
||
|
No. of Shares |
Percentage of
Holding |
No. of Shares |
Percentage of
Holding |
|
|
Mahindra and
Mahindra Limited |
16466789 |
50.69 |
16466789 |
50.69 |
|
Mr. Girdharilal
Agarwal |
2041510 |
6.28 |
1921452 |
5.92 |
(e) Shares reserved for issue under ESOP scheme:
|
Particulars |
31.03.2013 |
31.03.2012 |
|
Number of shares
reserved for ESOP scheme |
536.500 |
712,000 |
|
Number of shares
vested but not exercised |
536.500 |
712,000 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
|
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
324.800 |
|
(b) Reserves & Surplus |
|
|
1,355.900 |
|
(c) Money received against
share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
|
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
|
1,680.700 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
1,593.800 |
|
(b) Deferred tax liabilities
(Net) |
|
|
107.700 |
|
(c) Other long term
liabilities |
|
|
0.000 |
|
(d) long-term provisions |
|
|
75.400 |
|
Total
Non-current Liabilities (3) |
|
|
1,776.900 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
685.200 |
|
(b) Trade payables |
|
|
753.000 |
|
(c) Other current liabilities |
|
|
127.100 |
|
(d) Short-term provisions |
|
|
17.400 |
|
Total
Current Liabilities (4) |
|
|
1,582.700 |
|
|
|
|
|
|
TOTAL |
|
|
5,040.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
1,367.600 |
|
(ii) Intangible Assets |
|
|
0.400 |
|
(iii) Capital work-in-progress |
|
|
27.700 |
|
(iv) Intangible assets under
development |
|
|
0.000 |
|
(b) Non-current Investments |
|
|
1,113.500 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
656.800 |
|
€ Other Non-current assets |
|
|
9.500 |
|
Total
Non-Current Assets |
|
|
3,175.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
0.000 |
|
(b) Inventories |
|
|
406.800 |
|
€ Trade receivables |
|
|
1,321.500 |
|
(d) Cash and cash equivalents |
|
|
54.100 |
|
€ Short-term loans and
advances |
|
|
82.400 |
|
(f) Other current assets |
|
|
0.000 |
|
Total
Current Assets |
|
|
1,864.800 |
|
|
|
|
|
|
TOTAL |
|
|
5,040.300 |
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
324.800 |
324.800 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Employees Stock Options Outstanding |
|
0.000 |
12.600 |
|
|
4] Reserves & Surplus |
|
1696.300 |
1314.700 |
|
|
5] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
2021.100 |
1652.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
1261.100 |
1931.900 |
|
|
2] Unsecured Loans |
|
1116.500 |
1503.400 |
|
|
TOTAL BORROWING |
|
2377.600 |
3435.300 |
|
|
DEFERRED TAX LIABILITIES |
|
230.000 |
65.200 |
|
|
|
|
|
|
|
|
TOTAL |
|
4628.700 |
5152.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
3186.600 |
2867.700 |
|
|
Capital work-in-progress |
|
64.300 |
141.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
141.000 |
140.900 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1724.700
|
1631.500
|
|
|
Sundry Debtors |
|
2896.500
|
2659.200
|
|
|
Cash & Bank Balances |
|
30.000
|
19.200
|
|
|
Other Current Assets |
|
10.200
|
0.000
|
|
|
Loans & Advances |
|
671.000
|
577.000
|
|
Total
Current Assets |
|
5332.400
|
4886.900
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
2950.500
|
1422.600
|
|
|
Other Current Liabilities |
|
925.800
|
1371.200
|
|
|
Provisions |
|
219.300
|
90.700
|
|
Total
Current Liabilities |
|
4095.600
|
2884.500
|
|
|
Net Current Assets |
|
1236.800
|
2002.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
4628.700 |
5152.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
7,663.900 |
7032.600 |
13405.200 |
|
|
|
|
Other Income |
6.500 |
6.600 |
23.900 |
|
|
|
|
TOTAL (A) |
7,670.400 |
7039.200 |
13429.100 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Manufacturing and other Expenses |
-- |
-- |
12872.900 |
|
|
|
|
Increase/(Decrease) in Finished Goods |
-- |
-- |
(86.200) |
|
|
|
|
Cost of Raw materials and Components
Consumed |
5,791.000 |
5275.200 |
-- |
|
|
|
|
Changes in inventories of finished goods and work-in-progress |
(43.900) |
2.200 |
-- |
|
|
|
|
Employee benefit expenses |
667.100 |
577.600 |
-- |
|
|
|
|
Other Expenses |
558.900 |
494.400 |
-- |
|
|
|
|
TOTAL |
6,973.100 |
6349.400 |
12786.700 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
697.300 |
689.800 |
642.400 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES/ INTEREDST |
261.600 |
44.000 |
423.900 |
||
|
|
|
|
|
|
||
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
435.700 |
645.800 |
218.500 |
||
|
|
|
|
|
|
||
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
147.300 |
118.200 |
314.500 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
EXCEPTIONAL ITEM AND TAX |
288.400 |
527.600 |
(96.000) |
||
|
|
|
|
|
|
||
|
Add |
Exceptional item
– profit on sale of land |
0.000 |
885.700 |
0.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT/ (LOSS)
BEFORE TAX |
288.400 |
1413.300 |
(96.000) |
||
|
|
|
|
|
|
||
|
Less |
TAX |
625.600 |
1044.400 |
(36.300) |
||
|
|
|
|
|
|
||
|
|
PROFIT/ (LOSS)
AFTER TAX |
(337.200) |
368.900 |
(59.700) |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
771.800 |
402.900 |
462.500 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Dividend |
0.000 |
0.000 |
0.000 |
|
|
|
|
Tax on Dividend |
0.000 |
0.000 |
(0.100) |
|
|
|
BALANCE CARRIED
TO THE B/S |
434.600 |
771.800 |
402.900 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Export Earnings |
142.900 |
391.100 |
269.100 |
|
|
|
|
Freight and insurance |
4.100 |
8.300 |
6.200 |
|
|
|
TOTAL EARNINGS |
147.000 |
399.400 |
275.300 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
873.200 |
2469.700 |
1781.400 |
|
|
|
|
Stores & Spares |
44.800 |
113.200 |
97.000 |
|
|
|
|
Capital Goods |
1.700 |
0.100 |
3.500 |
|
|
|
TOTAL IMPORTS |
919.700 |
2583.000 |
1881.900 |
||
|
|
|
|
|
|
||
|
|
Earnings /
(loss) Per Share (Rs.) |
(10.38) |
11.36 |
(1.84) |
||
Expected Sales (2013-14): Rs.7500.000 Million (Approximately)
The above information has been parted by Mr. Vishal Panvelkar (Account
Manager).
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 Unaudited |
30.09.2013 Unaudited |
31.12.2013 Unaudited |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
1822.900 |
1636.200 |
1923.000 |
|
Total Expenditure |
1669.500 |
1509.500 |
1729.300 |
|
PBIDT (Excl OI) |
153.500 |
126.700 |
193.600 |
|
Other Income |
1.300 |
6.400 |
30.600 |
|
Operating Profit |
154.800 |
133.000 |
224.200 |
|
Interest |
65.800 |
68.300 |
3.700 |
|
Exceptional Items |
0.000 |
16.600 |
2274.000 |
|
PBDT |
89.000 |
81.400 |
2494.600 |
|
Depreciation |
38.600 |
40.200 |
40.500 |
|
Profit Before Tax |
50.400 |
41.200 |
24.540 |
|
Tax |
13.800 |
6.900 |
609.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
36.600 |
34.300 |
1844.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(4.40)
|
5.24
|
(0.44)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.76
|
20.10
|
(0.72)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.40
|
16.58
|
(1.24)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.70
|
(0.06)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.36
|
1.18
|
2.08
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.18 |
1.30
|
1.69
|
FINANCIAL ANALYSIS
[all figures are in
Rupees Millions]
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Total Income |
13405.200 |
7032.600 |
7,663.900 |
|
|
|
(47.538) |
8.977 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
13405.200 |
7032.600 |
7,663.900 |
|
Profit |
(59.700) |
(368.900) |
(337.200) |
|
|
(0.45%) |
5.25% |
(4.40%) |
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 |
Yes |
|
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 |
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 |
Case
Details
Bench:-Bombay
|
Lodging No.:- |
CEXAL/224/2008 |
Filing Date:- |
26/09/2008 |
Reg. No.:- |
CEXA/91/2012 |
Reg. Date:- |
30/07/2012 |
|
|
|||||||
|
Petitioner:- |
The COMMISSIONER OF CENTRAL EXCISE |
Respondent:- |
M/S MAHINDRA UGINE STEEL COMPANY LIMITED |
||||
|
Petn.Adv:- |
J.B.MISHRA |
|
|
||||
|
|
|||||||
|
District:- |
MUMBAI |
|
Bench:- |
DIVISION |
||
|
Status:- |
Admitted (Unready) |
Category:- |
CENTRAL EXCISE APPEAL (CEXA) |
|
|
|||
|
Last Date:- |
18/04/2012 |
Stage:- |
TAX APPEALS FOR REJECTION U/R.986 OF THE H.C.(O.S.)RULES1980 |
|
Last Coram:- |
HON'BLE SHRI JUSTICE J.P.DEVADHAR HON'BLE SHRI JUSTICE M.S.SANKLECHA |
UNSECURED LOAN
|
Unsecured Loan |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
Deposits – Inter corporate deposit |
0.000 |
250.000 |
|
Other loans and advances |
0.000 |
866.500 |
|
Total |
0.000 |
1116.500 |
STEEL
& RING BUSINESSES:
During
the year, the company transferred its Steel business including Rings, as at
closing hours of 9th July 2012 on slump sale basis as a going concern to its
wholly owned subsidiary namely Navyug Special Steel Private Limited, now known
as Mahindra Sanyo Special Steel Private Limited (MSSSPL). However, for the
better understanding of the performance, the below financials of the Steel
(including Rings) business have been
reported
for the entire year.
During
the year, the Steel business sold 1,08,679 tonnes of alloy steel products as
compared to 1,19,370 tonnes sold in the previous year. The Steel business
registered sales revenue for alloy steel products at Rs 7600.000 Millions for
the year as compared to Rs 7865.000 Million of the previous year posting a
marginal drop of 3%. Operating efficiency of the plant, however, improved
during the financial year.
The Rings
business registered sales of 3494 tonnes of Ring (Bearing Races) products for a
value of Rs 490.000 Million during the year as compared to 3714 tonnes for Rs
455.000 Million recorded in the previous year.
The Steel
business started receiving low cost power from Wardha Power Company Limited
(WPCL) from the month of May of the year under review resulting in saving in
the cost of power of around 10-12%. The Steel business will continue its
initiatives to enhance margins by way of further improvements in operating
efficiencies, and also take steps for mitigating input price volatility.
Sanyo
Special Steel Company Limited (Sanyo) and Mitsui and Company Limited, (Mitsui)
have invested in the equity of MSSSPL. The Steel business will gain from the technical
expertise of the Sanyo and marketing support from Mitsui, to improve its
performance in the years ahead.
STAMPINGS
BUSINESS:
During
the year, sales volume of the Stampings business of the Company grew from
63,953 tonnes (previous year) to 69,318 tonnes registering a growth of around
8%. Sales value for the Stampings business for the year was Rs 766.39 crore as
compared to Rs 7032.600 Millions recorded in the previous year registering a
growth of around 9%.
Stampings
business primarily caters to Utility Vehicles (UV), Heavy Commercial Vehicles
(HCV), Tractorand Light Commercial Vehicles (LCV) segments. During the
financial year, there was slow down in tractors and HCV segments but the
Company was able to set off lower volumes in these segments with new business
from UV & LCV segments, and delivered an above par performance despite the
general slowdown in the auto industry.
Stampings
business has secured firm orders from Tata Motors Limited, and Mahindra and
Mahindra Limited, for setting up greenfield facilities at Dharwad, Karnataka
and Zaheerabad, Andhra Pradesh for supplying auto components for their new
models. These new facilities are expected to be operational by financial year
2016 and will enable the Stampings business to grow at a sustained pace.
Stampings
business has undertaken several projects during the year to improve its
operating and manpower efficiencies through automation of its press lines and
assembly cells. The Company remains focused on improving its process
efficiencies, and customer and employee centricity to best-in-class standards,
in the years ahead.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
CORPORATE
GOVERNANCE:
The
company is committed to following the highest standards of corporate
governance. A Report on Corporate Governance along with a certificate from the
Auditors of the Company regarding compliance thereof as stipulated under Clause
49 of the Listing Agreement forms part of the Annual Report.
FINANCE:
During the
year, the liquidity position of the Company was in general satisfactory. The
Company met its obligations towards capital expenditure and working capital
through mix of internal accruals and external borrowings.
COMPANY
OVERVIEW:
Mahindra
Ugine Steel Company Limited (MUSCO) is a subsidiary of Mahindra and Mahindra
Limited. During the year, the Company was operating in two business segments
namely (a) manufacturing of Stampings (Pressed Sheet metal components and
assemblies)catering to the automotive industry and (b) manufacturing of Alloy
steel and Rings rolling products primarily for the automotive and engineering
industries.
The
Company is one of leading manufacturers of Stampings products in India and
caters to the automobile industries with wide range of stamped products like
skin and non skin panels, chassis reinforcements, cross members, engine
components etc., from its production units located at Kanhe, Nashik, Rudrapur
and Pantnagar. These units are located near important automotive clusters in India
and some of the largest automotive and tractor manufactures in India are the
customers of the stampings products of the Company. Majority of the revenue of
the Stampings business comes from the utility vehicle segments thought he
Company has significant presence in the tractor, light commercial vehicles,
passenger cars and three wheeler segments of the automotive market. The Company
provide services range from conceptualization to design, testing, and
manufacture of stamping products. The core strengths of the business lies in
tool design and development, and in providing value-added services like welded
assemblies, powder coating and electrophoretic deposition(ED) coating.
During
the year, the Company transferred its Steel including Ringsbusiness (Steel
business) as at closing hours of 9th July 2012 on slump sale basis as going
concern to its wholly owned subsidiary Navyug Special Steel Private Limited,
(Navyug),to bring on board two strategic investors, Sanyo Special Steel Company
Limited. (Sanyo) and Mitsui and Company Limited.(Mitsui), in order to infuse
capital and technical and marketing expertise for the growth of the Steel
business. Sanyo and Mitsui subscribed to 29% and 20%respectively in the equity
shares of Navyug on 5th September 2012 converting it in to a Joint Venture
subsidiary of the Company with 51% of the equity of Navyug being held by the
Company. The name of Navyug was changed to Mahindra Sanyo Special Steel Private
Limited (MSSSPL) with effect from 18th September 2012.
The
subsidiary is the secondary producer of special alloy steel through steel scrap
as its main raw material, and caters mainly to Automotive, Engineering, Oil and
Gas, Tools and Die Industry, Bearings and other capital goods industries. The
Steel business manufactures alloy and specialty Long Steel Products (Bars &
billets through 50 Electric Arc Furnace (EAF) route.
The
Ring Rolling business is forward integration for the Steel business and caters
to the Bearing industry (especially antifriction bearings) as well as Auto
parts in as forged/ and green machined condition. It manufactures rings through
both closed die forging and seamless ring rolling processes.
INDUSTRY STRUCTURE AND OUTLOOK
As per
the Economic Survey of India, the growth rate of the Indian economy decelerated
to a slower rate of around 5% as compared to the growth of 6.2% recorded in the
previous financial year. The factors responsible for the economy slowing down,
as per the Economic Survey, were firstly the strong inflation and a monetary
response that slowed consumption demand. Secondly, the corporate and
infrastructure investment started slowing both as a result of investment
bottlenecks as well as the tighter monetary policy. Thirdly, even as the economy
slowed, it was hit by two additional shocks: a slowing global economy, weighed
down by the crisis in the Euro region and uncertainties about fiscal policy in
the United States. A weak monsoon; at least in its initial phase, did not help
the economy either. The government recently has affirmed its commitment to
boost the overall growth of the economy and the domestic economy is expected to
perform better in years ahead.
Both
the businesses, i.e., the erstwhile Steel business as well as the Stampings business
are predominantly dependent on the growth and performance of the automotive
industry in India. In the financial year the Indian automobile industry in
general witnessed an adverse impact of rising input costs, high interest rates,
increasing fuel prices and weak consumer sentiment. However, the Utility
Vehicles (UVs) and Light Commercial Vehicles (LCVs) segments, to which the
company has a major exposure to, posted significant growth and remained
unaffected by the slowdown in the automobile industry. The growth in the
Tractor sector continues to witness a downturn due to the slowdown in the
economy’s growth rate and simultaneous inflationary pressures. In the coming
year they expect the car market to be flat, UVs to experience high growth but
at a slower growth rate than last year, and LCVs and tractors to show slightly
positive growth rates.
Despite
the current slowdown in the automotive industry, the long term potential
remains secure. Vehicle penetration rate is still very low in India and factors
like adequate availability of financing, and growing aspirations for ownership
of SUVs and MUV amongst the young population will positively impact demand. The
expected increase in demand has prompted major global automotive manufactures
to setup their manufacturing facilities in India. Various types of vehicle
models are being launched to cater to the consumer needs and choices. Apart
from global manufactures, Indian automotive majors are also expanding their
capacities as well as portfolios in India.
With the
economy slowing and investment in infrastructure under strain, the engineering
and capital goods industry slowed down. But like the automotive industry, the
long term growth potential of these industries remains secure.
ANALYSIS
OF STAMPINGS BUSINESS
PERFORMANCE
During
the year the Stampings business of the Company, on the back of strong demand in
Utility Vehicle segment, posted a healthy growth in sales as well as in revenue
as compared to the previous year. The Farm equipment sector registered a poor
performance in the financial year, due to which the company was not able to
achieve its full growth potential.
In
financial year 2012-13, the Stampings business achieved the highest ever
operating income, even surpassing the then highest income achieved in financial
year 2011-12. The key highlights are as follows:
• Sale
of stampings & assemblies increased from 63,953 tonnes in the financial
year 2011-12 to 69,318 tonnes in the financial year2012-13 posting a growth
of8%.
•
Operating Income increased from Rs 7032.600 Million in financial year 2011-12
to Rs7663.900 Million in financial year 2012-13 posting a growth of 9%.
•
Operating margin (EBIDTA) decreased from Rs 683.000 Million in financial
year2011-12 to Rs 662.800 Million in financial year 2012-13 due to increase in
financing cost and increase in input costs.
OPPORTUNITIES AND STRATEGIC OUTLOOK
The
company has seized the opportunity offered by the growing demand in the Utility
Vehicle and Commercial Vehicle segment by targeting its products to these
segments. In view of the global slowdown particularly in the European economy,
the global automotive manufactures are setting up their units in India. The
Company is fully geared to meet this growing demand of global and domestic
automotive manufactures by proposing to expand its production capacity. The
Company proposes to expand its manufacturing capacity to cater to the growing
demand of automotive products from southern parts of India and is working on
two Greenfield projects in Karnataka and Andhra Pradesh. In order to improve
efficiency and meet larger volume requirements, the Kanhe and Nasik plants
installed automation on its press lines. The Company has also increased the
number of products which are manufactured via automated press lines. The Company
has planned to deploy low cost automation in a big way at all manufacturing
locations.
The
Company is also exploring the growth opportunity in the 'design to development
‘segment of automotive components. The Company aims to provide complete part
development including development of tools, dies and checking fixtures, sheet
metal stampings and welded assemblies to the customers. The Company has planned
and established Design and Development function with central responsibility and
people located at all plants.
ANALYSIS OF STEEL
AND RING (BEARING RACES) BUSINESS
PERFORMANCE:
The Steel including Rings business of the Company was transferred to
subsidiary of the Company as at the closing hours of 9th July 2012. However,
for the purpose of better understanding of the performance, the financials of
the Steel business as reported below are for the entire year.
In the financial year 2012-13, the Steel and Rings business recorded a
marginal drop in sales revenue by 3% on year to year basis. The business
suffered operating loss (PBT) of Rs (768.200) Millions in the full financial
year 2012-13 (as compared to operating loss (PBT) of Rs (886.100) Million
recorded in the financial year 2011-12).
The Steel business was transferred to the subsidiary in whose equity the
two Japanese investors namely Sanyo Special Steel Company Limited (Sanyo) and
Mitsui and Company Limited.(Mitsui) invested around Rs 2180.000 Million. This
strategic induction of Japanese joint venture partners is expected to help the
Steel business to reduce its dependence on external borrowing and work towards
improvement of the processes, quality and marketing strategy. The joint venture
has become operational and effective from 5th September 2012. Both Sanyo and
Mitsui have deputed their respective personnel and they have started working in
cohesion with the management of steel business to improve the performance.
The year continued to witness the effect of economic slowdown and
inflationary trend in cost of metallic, power and fuel which largely remain
un-recovered from the customers due to competitive pressure. The fixed cost of
operation increased in the financial year 2012-13 by 8% as compared to that in
the financial year 2011-12 mainly on account of technical fees and personnel
cost.
During the year, the sales revenue of the Rings business recorded a
growth of 8% on year on year basis. The sales revenue was Rs 491. 000 Million
as compared to previous year of Rs 455.000 Million. The rise is sales indicates
improvement in customer satisfaction. To further meet customer requirement of
machined rings, the Rings business is in the process of developing and
establishing machining capacity with Vendors. With strong order book, the Ring
business is expected to improve operational performance in the next financial
year.
Summarized operational performance of Steel and Ring business for the
financial year2012-13 is given below:
• Sales 1,12,173 tonnes in financial year 2012-13 as compared to 1,23,084
tonnes recorded in financial year 2011-12.
• The overall revenue from steel and rings products was Rs 8090.000
Million in the financial year 2012-13 as compared to Rs 8320.000 Million
recorded in financial year2011-12.
• The operating margin (EBITDA) in the financial year 2012-13 declined to
Rs (289.600) Million as compared to Rs (184.400) Millions recorded in the
financial year 2011-12. In the fourth quarter of the financial year 2012-13,
the Steel business recorded positive EBITDA of Rs 34.700 Million, posting an
improved performance.
• Average Power cost increased from Rs 6.64/KWH in financial year 2011-12
to Rs6.99/KWH in financial year 2012-13.
• The Steel business witnessed steep increase in cost of the furnace oil
in the financial year, which also impacted its performance.
• There was foreign exchange loss of Rs 37.800 Million to the Steel
business in the financial year2012-13.
During the year under review, the Steel business started receiving power
at a low cost from Wardha Power Company Limited (WPCL).This has marginally
helped to improve the cost of production of the steel business. Post
operational of the joint venture, the Steel business has been taking every
effort with the help of technical and marketing expertise of the joint venture
partners to improve the quality, process efficiency, productivity, marketing
strategy and at the same time continue to take steps to reduce the cost, and
optimize the available resources for improving overall performance of the Steel
business.
OPPORTUNITIES AND
STRATEGIC OUTLOOK
India is the 4th largest crude steel producer of steel in the world.
Indian steel industry is closely linked with domestic economic growth. The
liberalization of industrial policy and other initiatives taken by the
Government have given a definite impetus for entry, participation and growth of
the private sector in the steel industry. India is expected to show robust
growth in steel use in the coming years due to its domestic economy, massive
infrastructure needs and expansion of industrial production. This growth is
mainly driven by construction and automobile industries. The per capita
consumption of steel in India is still low as compared to developed countries,
providing huge opportunity for growth due to expected increase in demand of specialized
steel in hi-tech engineering industries such as power generation, automotive
petrochemicals, fertilizers etc. Growing Indian automobile industry, which
depends on steel industry for parts manufacturing, is expected to lead to a
strong steel demand in future. The Steel business continues its focus on
exploring business opportunities in sectors like Tool and dies, Oil, Gas
&Mining. Further the new areas like renewable energy sectors are also being
explored. Similarly, the Rings business is also focusing to improve its export
business by adding new international overseas Original Equipment Manufacturer
(OEM) of Bearings, as major auto OEMs prefer MUSCO Rings since it has a captive
steel source and the approval of steel and rings can happen together.
In the last few quarters, the Steel business has seen a slump in
performance with increased competition in the automotive and bearing segments
leading to a margin decrease. The business has drawn up a strategy to move more
aggressively into emerging value added segments. The JV with Mitsui and Sanyo
is designed to transform the Steel Business to specialty steel company focused
on emerging value added segments in order to de-risk itself from the existing
automotive & bearing industry segments. The joint venture has become
operational and the steel business is expected to reap the benefits of the
respective brands, technologies and networks of Sanyo and Mitsui in order to
meet the customers' needs and improve the performance. The Steel business is
committed to achieve the objective of the joint venture of operational
excellence, improved productivity and enhancement of both cost and quality to
international standards to enable the Steel Business to achieve its full
business potential.
CONTINGENT LIABILITIES NOT PROVIDED FOR IN
RESPECT OF: (AS ON 31.03.2013)
a) Bills discounted but not matured Rs.
72.600 Millions (2011-2012: Rs. 238.200 Millions).
b) Excise duty and Service Tax:
Excise matters for which the Company is
contingently liable amounting Rs. 133.400 Millions (2011-2012: Rs. 117.200
Millions). This includes:
i) Rs. 52.000 millions (2011-2012: Rs. 5.200
millions) - relating to the method of valuation of customer processed finished
goods for the purpose of discharge of excise duty, where the customer supplies
raw material. This matter has been settled by Custom, Excise and Service Tax
Appellate Tribunal (CESTAT) in favour of the Company. The Department has gone
in further appeal in the Supreme Court.
ii) Rs. 49.600 Millions (2011-2012: Rs.
46.500 Millions) - relating to alleged availment of Cenvat credit on invoices
issued by certain registered dealers without actually receiving the material
covered therein. The Company has filed an appeal in CESTAT against the said
demand.
iii) Rs. 4.200 Millions (2011-2012: Rs.
3.900 Millions) being matters related to availment of service tax credit.
iv) Rs. 10.100 Million (2011-2012: Rs. Nil)
being disallowance of input credit availed on canteen expenses.
v) Rs. 19.000 Millions (2010-2011: Rs.
16.300 Millions) - being other matters.
c) Sales Tax:
Sales Tax matters for which the Company is
contingently liable amounting Rs. 93.100 Millions (2011-2012: Rs. 93.100
Millions). This includes:
i) a demand of Rs. 85.100 Millions
(2010-2011 : Rs. 85.100 Millions) for F.Y. 2006-07 and F.Y. 2007-08 by treating
the branch transfer of goods as sales made by the Company and for
non-submission of ‘C’ forms. The amount is inclusive of interest and penalty.
The Company has fi led an appeal in Sales Tax Tribunal against the said demand.
ii) Other sales tax matters Rs. 8.000
Millions (2011-2012: Rs. 8.000 Millions).
d) Taxation demands against which the
Company is in appeal Rs. 63.300 Millions (2011-2012: Rs. 171.800 Millions).
e) Other matter for which the Company is
contingently liable is Rs. 587.400 Millions (2011-2012: Rs. 581.400 Millions).
This represents dispute in rate of water charges, inclusive of penal charge of
Rs. 109.200 Millions (2011-2012: Rs. 100.200) and late fee charge of Rs.
223.100 Millions (2011-2012: Rs. 223.100), demanded by the Irrigation
department.
The company is in disputes with the
Irrigation Department (Water Resources Department) in respect of levy of charge
for use of water from Patalganga River, for the period from July 1991 to May
2012. The Hon’ble Court of Alibag District, before whom the appeal was filed by
the irrigation Department against the Order of the court of the Civil Judge,
Senior Division Panvel, decided the appeal against the Company. Consequently
the company filed an appeal before the Hon’ble High court of Judicature of
Bombay challenging the order of the Alibag Court. The Hon’ble Bombay high court
has admitted the appeal for the dispute period of July 1991 to March 2001,
since for the period April 2001 to May 2012 there has been no agreement in
force between the company and the irrigation department. As the directors of
the Hon’ble Bombay High Court, the company has deposited Rs.28.800 Million with
the Hon’ble Bombay High Court, Being the demand as per the irrigation
department for the said period of July 1991 to March 2001.
In respect of the demand for period from
April 2001 to May 2012, the company has filed a writ petition before the
Hon’ble Bombay High Court. The Hon’ble High Court. Vide order dated 2nd
July, 2012, has admitted the writ petition of the company in relation of water
charges demanded by the Irrigation Department, District- Raigad for the said
period. In Compliance with the conditions of the order, the company has paid an
amount of Rs. 233.500 Millions with the irrigation Department, being the
arrears of water charges for the period from July 1991 to May 2012 send has
also given a bank guarantee towards penal rate charges of Rs. 101.900 Millions
Claimed by the irrigation Department. The High Court has also allowed the
irrigation Department to withdraw the amount of arrears of Rs. 28.800 Millions
deposited earlier with it in respect of disputed water charges claim for the
period from July 1991 to March 2001. As the order, the company is entailed to
pursue the proceedings filed by it before the Hon’ble Bombay High Court and
that the state of Maharashtra (Irrigation Department) shall not adopt any
coercive steps for recovery of the aforesaid panel rate charges of Rs. 101.900
Million and the late fee of Rs. 223.100 Millions
Pending the hearing and final disposal of
these proceedings and based on the Company assessment of water charges dues,
the aforesaid mount of Rs. 262.300 Millions is considered as recoverable and an
amount of Rs. 36.800 Millions has been cumulative provided for based on the
management estimate as to the expected charge on this account.
f) Other claims against the Company not
acknowledged as debts:
i. Rs. Nil (2011-2012: Rs. 179.900 Millions)
inclusive of interest and penalty of Rs. Nil (2011 – 2012: Rs. 140.400 Million)
pertaining to payment of custom duty in respect of the Value Based Advance
Licenses (VBAL) purchased by the Company and used for import of goods. The
export obligation against the above VBAL was already fulfilled by the seller of
the license. The Company appealed against the said notice with CESTAT who has
remanded the case back to the commissioner for ascertaining the facts and then
passing an appreciate order.
ii. Claim pertaining to material supply
contract Rs. 96.600 Millions (2010-2011: Rs. 94.600 Millions). The matter is
under arbitration.
iii. Claims
relating to lease rentals Rs. 10.200 Millions (2010-2011: Rs. 9.500 Millions).
The Company has
issued corporate guarantee of Rs. 2850.000 Millions on 14 July, 2012 for total
working capital facilities of its then wholly owned subsidairly, Navyug Special
Steel Private Limited [now known as the Mahindra Sanya Special Steel Private Limited
(MSSSPL)] favoring State Bank of India the lead bank under consortium
arrangement with Dena Bank and Bank of India pending creation of securities or
for a year whichever is later. Subsequent to the year-end the said corporate
guarantee has been discharged by the bank
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULT
FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2013
(Rs. in millions)
|
Particulars |
Quarter ended 31.12.2013 |
Quarter
ended 30.09.2013 |
Nine months ended 31.12.2013 |
|
|
|
|
|
|
Gross Sales/Income from operation |
1793.103 |
1533.994 |
5025.377 |
|
Less: Excise Duty |
176.271 |
142.093 |
481.684 |
|
1 a.Net Sales/ Income
from operations |
1616.832 |
1391.901 |
4543.693 |
|
b. Other operating income |
306.144 |
244.279 |
838.402 |
|
Total Income from operations (1a+1b) |
1922.976 |
1636.180 |
5382.095 |
|
2. Expenditure |
|
|
|
|
(a) Cost of materials consumed (including
outside processing charges for materials) |
1448.931 |
1183.636 |
3981.975 |
|
(b) Changes in inventories of finished goods, work-in progress and
stock-in-trade |
(27.469) |
6.935 |
(9.847) |
|
(c) Employee benefits expense |
160.212 |
166.512 |
487.419 |
|
(d) Depreciation and amortization
expense |
40.539 |
40.228 |
119.363 |
|
(e) Power and Fuel |
34.973 |
33.396 |
97.956 |
|
(f) Stores and Packaging material
Consumed |
42.073 |
44.576 |
128.417 |
|
(f) Other expenses |
70.622 |
74.474 |
222.392 |
|
Total expenses |
1769.881 |
1549.757 |
5027.675 |
|
3. Profit(+) Loss
(-) from Operations before Other income, finance costs and Exceptional Items
(1-2) |
153.095 |
86.423 |
354.420 |
|
4. Other Income |
30.595 |
6.395 |
38.316 |
|
5. Profit(+) Loss (-)
from ordinary activities before Finance costs and Exceptional Items (3+4) |
183.690 |
92.818 |
392.736 |
|
6. Finance costs |
3.722 |
68.260 |
137.777 |
|
7. Profit(+) Loss
(-) from ordinary activities after Finance costs but before exceptional items
(5-6) |
179.968 |
24.558 |
254.959 |
|
8.Exceptional Items |
|
|
|
|
a. Profit on Sale
of land |
1244.471 |
- |
1244.471 |
|
b. Provision on
estimated loss that may arise on eventual transfer of steel business |
1029.566 |
16.629 |
1046.195 |
|
9. Profit (+)/ Loss (-) from Ordinary Activities before
tax (7+8) |
2454.005 |
41.187 |
2545.625 |
|
10. Tax expense |
609.168 |
6.919 |
629.880 |
|
Total |
609.168 |
6.919 |
629.880 |
|
11. Net Profit(+)
Loss (-) from ordinary activities after tax (9-10) |
1844.837 |
34.268 |
1915.745 |
|
12. Paid - Up
equity share capital (Face value of the share Rs. 10/- each) |
324.825 |
324.825 |
324.825 |
|
13. Reserves
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
-- |
-- |
-- |
|
Earnings per share Basic &
Diluted (Face value Rs.10 each) |
|
|
|
|
Basic |
|
|
|
|
- Before exceptional items |
4.38 |
0.54 |
6.05 |
|
- After exceptional items |
56.80 |
1.05 |
58.98 |
|
Earnings per share Basic &
Diluted (Face value Rs.10 each) |
|
|
|
|
Diluted |
|
|
|
|
- Before exceptional items |
4.37 |
0.54 |
6.05 |
|
- After exceptional items |
56.77 |
1.05 |
58.95 |
|
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
14. Public
shareholding |
|
|
|
|
- Number of shares |
14463040 |
14463040 |
14463040 |
|
- Percentage of
shareholding |
44.53 |
44.53 |
44.53 |
|
15. Promoters and
Promoters' Group Shareholding |
|
|
|
|
- (a)
Pledged/Encumbered |
|
|
|
|
- No. of Shares |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the total outstanding
of Promoters and Promoters' groups) |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the total
share capital of the Company) |
-- |
-- |
-- |
|
- (b)
Non-Encumbered |
|
|
|
|
- No. of Shares |
18019489 |
18019489 |
18019489 |
|
- Percentage of Shares (as a % of the total
outstanding of Promoters and Promoters' groups) |
100.00 |
100.00 |
100.00 |
|
- Percentage of Shares (as a % of the total
share capital of the Company) |
55.47 |
55.47 |
55.47 |
Notes:
1 The above unaudited financial result have been reviewed by the Audit
committee and approved by the board of director at their respective meetings
held on 7th February, 2014 and have been subjected to a limited
review by the statutory auditors of the company.
2 The bifurcation of the above standalone result between continuing and
discontinuing operation for Nine months ended 31.12.2012 and financial year
ended 31.03.2013, the periods for which discounting operation (steel division) was
a part of the company is as under.
(Rs. in millions)
|
Particulars |
Continuing Operations (Stamping Division) |
Discounting Operations (Steel Division) |
Total (Company) |
|||
|
|
Nine Month Ended
31.12.2012 |
Financial Year
ended 31.03.2013 |
Nine Month Ended
31.12.2012 |
Financial Year
ended 31.03.2013 |
Nine Month Ended
31.12.2012 |
Financial Year
ended 31.03.2013 |
|
Income from
Operations |
5787.603 |
7663.874 |
2235.192 |
2244.396 |
8022.795 |
9908.270 |
|
Profit(+) Loss (-) from ordinary
activities before exceptional items |
267.479 |
288.377 |
(252.595) |
(252.592) |
14.884 |
35.785 |
|
Loss on transfer of steel business |
- |
- |
(473.069) |
(470.039) |
(473.069) |
(470.039) |
|
Profit (+)/ Loss (-) from Ordinary
Activities before tax |
267.479 |
288.377 |
(725.664) |
(722.631) |
(458.185) |
(434.254) |
|
Net Profit(+) Loss (-) from ordinary
activities after tax |
120.030 |
151.366 |
(461.489) |
(488.529) |
(341.459) |
(337.163) |
|
Estimated net
effect of expenses pertaining to the discounting (steel) operation |
(70.278) |
(70.278) |
(70.278) |
(70.278) |
- |
- |
|
Tax
(Charge)/credit on above expenses |
36.650 |
36.650 |
(36.650) |
(36.650) |
- |
- |
|
After exceptional item comprising |
||||||
|
Finance Cost |
(66.024) |
(66.024) |
66.024 |
66.024 |
- |
- |
|
Other Expenses
Net |
(4.254) |
(4.254) |
4.254 |
4.254 |
- |
- |
3) Tax expenses for the quart and nine months ended 31.12.2013 is net of
write back of excess provision of tax for an earlier year amounting to Rs.
19.850 Million
4) As stated in the earlier quarters of the current year, the integrated
scheme of Amalgamation(“the Proposed Schme”) under Section 391to 394 f the
Companies Act 1956, involving the company, Mahindra Hinday Industries Limited,
Mahindra Gears International Limited, Mahindra Investment (India) Private
Limited and Partitions Internacionastes Autometal Tres S.L (“the Transfer
Companies”) with effect from form the Appointed Date, 1st October,
2013, was approved by the Board of Directors on 15th June, 2013 and
is subject to requite approvals.
5) Figures for the previous periods have been recorded wherever necessary.
INDEX OF CHARGE:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10366790 |
10/01/2013 * |
500,000,000.00 |
ICICI BANK
LIMITED |
ICICI tower, NBCC
Palace, Bism Pitamah Marg, Pragati Vihar,, New Delhi, Delhi - 110003, INDIA |
B66516774 |
|
2 |
90231216 |
16/08/2012 * |
969,300,000.00 |
Bank of Baroda |
Corporate
Financial Services Branch, 3, Walchand |
B45651379 |
*
Date of charge modification
FIXED ASSETS:
Tangible Assets:
·
Freehold land
·
Leasehold Land
·
Building
·
Plant and Equipmnt
·
Furniture and Fixtures
·
Office Equipment
·
Computers
·
Vehicles
Intangible Assets:
·
Computer
·
Software
1 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.61.86 |
|
UK Pound |
1 |
Rs.103.06 |
|
Euro |
1 |
Rs.84.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Report Prepared
by : |
ART |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
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 |
|
42 |
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.