MIRA INFORM REPORT
|
Report Date : |
10.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
ELECTROTHERM (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
A–1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380015,
Gujarat |
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|
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|
Country : |
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|
|
|
|
Financials (as
on) : |
30.09.2013 |
|
|
|
|
Date of
Incorporation : |
29.10.1986 |
|
|
|
|
Com. Reg. No.: |
04-009126 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.234.760
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29249GJ1986PLC009126 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
Line of Business
: |
Manufacturer of Electronic furnaces and other capital equipments,
Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron
Pipes, Battery operated vehicles, Electric Power Generation and services
relating to Electric furnaces, other capital equipments and battery operated
vehicles. |
|
|
|
|
No. of Employees
: |
3500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (11) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
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Litigation : |
Exist |
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|
Comments : |
Subject is an established company having a moderate track record. There company has incurred huge accumulated losses, which has eroded
the net worth of the company. Profitability of the company seems to be under
pressure. Business is active. Payment terms are slow and delayed. The company can be considered for business dealings on a safe and
secured trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
India’s current account
deficit narrowed in the quarter ended September as government measures to curb
imports, especially gold, kicked in. The current account deficit, the
excess of a country’s imports of goods and services over exports, narrowed to $
5.2 billion from $ 21 billion in the year ago period, according to provisional
Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for
the year will be less than $ 60 billion or 3 per cent of GDP and the latest
data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million worth
of mobile-phone-based transactions by July 2013 compared to Rs.260 million in
September, 2012, according to Deloitte report. The number of transactions has
shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
Management Non Co-operative
(Contact No. : 91-2717-660550)
LOCATIONS
|
Registered Office : |
A–1, Skylark Apartment, |
|
Tel. No.: |
91-79-26768844 |
|
Mobile No.: |
91-9825159296 (Mr. Shailesh Bhandari) |
|
Fax No.: |
91-79-26768855 |
|
E-Mail : |
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|
Website : |
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|
Area: |
3500 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Corporate office / Factory 1 : |
Engineering and Projects Division Survey No. 72, Village
: Palodia, Taluka : Kalol, District : Gandhinagar – 382 115, |
|
Tel. No.: |
91-2717-234554/ 660550/ 55/ 56/ 57 |
|
Fax No.: |
91-2717-237612/ 234616 |
|
|
|
|
Factory 2 : |
Special Steel, DI Pipe and Electric Vehicle
Division Survey No. 325,
Village : Samakhiyali, Taluka : Bhachau, District : Kutch, |
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|
Factory 3 : |
Wind Farm Project Village : Dhank, Taluka : Upleta, District : |
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Factory 4 : |
Electri Vehicle Division Survey No. 689
Paiki, Village : Thol, Taluka : Kadi, District: Mehasana – 382715, Gujarat,
India |
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|
|
Factory 5 : |
Village : Juni Jithardi, Taluka : Karjan, District : Vadodara, |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Mukesh Bhandari |
|
Designation : |
Chairman and CTO |
|
|
|
|
Name : |
Mr. Shailesh Bhandari |
|
Designation : |
Managing Director |
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|
|
|
Name : |
Mr. Avinash Bhandari |
|
Designation : |
Joint Managing Director and CEO |
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|
|
|
Name : |
Mr. Narendra Dalal |
|
Designation : |
Whole Time Director |
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|
|
|
Name : |
Mr. Nilesh Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ram Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pradeep Krishna Prasad |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Jigar Shah |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholder |
Total No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
2280575 |
19.87 |
|
|
975000 |
8.50 |
|
|
3255575 |
28.37 |
|
|
|
|
|
|
512500 |
4.47 |
|
|
512500 |
4.47 |
|
Total
shareholding of Promoter and Promoter Group (A) |
3768075 |
32.83 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
9800 |
0.09 |
|
|
100 |
0.00 |
|
|
1366666 |
11.91 |
|
|
1366666 |
11.91 |
|
|
1376566 |
11.99 |
|
|
|
|
|
|
1304802 |
11.37 |
|
|
|
|
|
|
1362689 |
11.87 |
|
|
274713 |
2.39 |
|
|
3389529 |
29.53 |
|
|
2000000 |
17.43 |
|
|
27253 |
0.24 |
|
|
1292231 |
11.26 |
|
|
70045 |
0.61 |
|
|
6331733 |
55.17 |
|
Total Public
shareholding (B) |
7708299 |
67.17 |
|
Total (A)+(B) |
11476374 |
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) |
11476374 |
0.00 |
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%20LIMITED%20-%20254932%2010-Mar-2014_files/image020.gif)
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Electronic furnaces and other capital equipments, Sponge
and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes,
Battery operated vehicles, Electric Power Generation and services relating to
Electric furnaces, other capital equipments and battery operated vehicles. |
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Products : |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
A Saleable |
|
|
|
|
1 Electronic Furnaces and other capital equipments |
Sets |
350 |
291 |
|
2 Wind Power generation |
KW Million KWH |
500 0.80 |
0 0.359 |
|
3 |
Nos. |
150000 |
8190 |
|
4 Ferrous and Non-Ferrous Billets /Bars/Ingots * |
MT |
314000 |
247282 |
|
5 Duct Iron Pipes |
MT |
192000 |
82998 |
|
6 Sponge & Pig Iron # |
MT |
286000 |
3085 |
# Total Installed Capacity is of 2,86,000 MT
* Actual Production is excluding captive consumption
GENERAL INFORMATION
|
No. of Employees : |
3500 (Approximately) |
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Bankers : |
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Facilities : |
NOTES LONG TERM
BORROWINGS (a) Secured by first
Charge by way of Equitable mortgage of all immovable properties and
hypothecation of specified movable assets situated at Vatva, Palodia, Dhank,
Samakhiyali – Kutch, and Chhadawada –Bhachau and Juni Jithardi, Karjan,
Vadodara and Bank Fixed Deposits and as second charge on all Stock-in-Trade
& Receivables. Further the loans are guaranteed by the personal guarantees of some of Directors. (b) ECB Loan is
secured by Pari Passu Charge over the movable assets and first Pari Passu
Charge on immovable assets of the company SHORT TERM
BORROWINGS a) Secured by first Charge by way of Equitable mortgage of all
immovable properties and hypothecation of specified movable assets situated
at Vatva, Palodia, Dhank, Samakhiyali – Kutch, and Chhadawada –Bhachau and
Juni Jithardi, Karjan, Vadodara and Bank Fixed Deposits and as second charge
on all Stock-in-Trade and Receivables. Further the loans are guaranteed by
the personal guarantees of some of Directors. (b) Secured by first charge by way of hypothecation of all stocks of
raw material, packing materials, fuel, stock in process, semi finished and
finished goods, stores and spares not relating to the plant and machinery and
stocks in trade and receivables and second charge on all movable fixed assets
and second and subservient charge by way of equitable mortgage of all
immovable properties situated at Vatva, Palodia, Dhank, Samakhyali- Kutch and
Chhadawada -Bhachau. Further the loans are guaranteed by the personal
guarantees of some of the Directors of the company |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Mehtaa Lodha and Company Chartered Accountant |
|
Address : |
Ahmedabad, Gujarat, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
V H Savaliya and Company Cost Accountant |
|
Address : |
Ahmedabad, Gujarat, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
RSM Astute Consulting Private Limited |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Subsidiaries : |
|
|
|
|
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Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
25000000 |
6% Non-Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
TOTAL |
|
Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11476374 |
Equity Shares |
Rs.10/- each |
Rs. 114.760
Millions |
|
12000000 |
6% Non-Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 120.000 Millions |
|
|
TOTAL |
|
Rs. 234.760 Millions |
A reconciliation of the number of shares outstanding at the beginning
and at the end of the reporting period.
|
Equity Shares |
No. of shares |
|
Shares outstanding at the beginning of the Period |
11,476,374 |
|
Shares outstanding at the end of the Period |
11,476,374 |
|
6% Non-Cumulative Redeemable Preference Shares |
No. of shares |
|
Shares outstanding at the beginning of the Period |
12,000,000 |
|
Shares outstanding at the end of the Period |
12,000,000 |
Rights, preference
and restriction attached to Equity Shares
(i) The face value
of the Equity shares is Rs.10/- per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividend in
Indian Rupees. During the year, the company has not declared any dividend.
(ii) The
shareholders are not entitled to exercise any voting right either personally or
proxy at any meeting of the Company in cases calls or other sums payable have
not been paid.
(iii) In the event
of liquidation of the company, holder 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.
(d) Rights,
preference and restriction attached to Preference Shares
(i) The face value
of the Preference shares is Rs. 10/- per share. The Preference share holder
does not have any voting rights. During the year, the company has not declared
any dividend.
(ii) In the event
of liquidation of the company, the preference shareholders will have priority
over equity shares in the payment of dividend and repayment of capital.
(e) There were no
shares reserved at the year-end for issue under options and contracts /
commitments for the sale of shares /disinvestment.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2013 |
30.09.2012 (18 Months) |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
234.760 |
234.760 |
234.760 |
|
(b) Reserves & Surplus |
(2737.920) |
(167.220) |
7059.900 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(2503.160) |
67.540 |
7294.660 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2693.660 |
5019.900 |
4947.060 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
865.130 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
53.680 |
75.530 |
45.340 |
|
Total Non-current
Liabilities (3) |
2747.340 |
5095.430 |
5857.530 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
28529.950 |
25604.360 |
19206.660 |
|
(b) Trade
payables |
2006.260 |
2155.200 |
1863.760 |
|
(c) Other
current liabilities |
2121.010 |
1267.590 |
2778.110 |
|
(d) Short-term
provisions |
42.470 |
42.540 |
15.510 |
|
Total Current
Liabilities (4) |
32699.690 |
29069.690 |
23864.040 |
|
|
|
|
|
|
TOTAL |
32943.870 |
34232.660 |
37016.230 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible
assets |
14787.830 |
16197.470 |
15705.700 |
|
(ii)
Intangible Assets |
18.240 |
17.560 |
25.980 |
|
(iii)
Capital work-in-progress |
111.390 |
95.850 |
2335.070 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1273.870 |
1223.950 |
1083.870 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
202.470 |
227.650 |
184.910 |
|
(e) Other
Non-current assets |
332.670 |
292.720 |
342.200 |
|
Total Non-Current
Assets |
16726.470 |
18055.200 |
19677.730 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
6509.380 |
6942.880 |
8527.600 |
|
(c) Trade
receivables |
4656.520 |
4459.350 |
5101.920 |
|
(d) Cash
and cash equivalents |
270.130 |
440.620 |
1180.320 |
|
(e)
Short-term loans and advances |
4775.140 |
4313.840 |
2518.780 |
|
(f) Other
current assets |
6.230 |
20.770 |
9.880 |
|
Total Current
Assets |
16217.400 |
16177.460 |
17338.500 |
|
|
|
|
|
|
TOTAL |
32943.870 |
34232.660 |
37016.230 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 |
30.09.2012 (18 Months) |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10552.320 |
22460.580 |
22968.930 |
|
|
|
Other Income |
64.060 |
258.020 |
163.900 |
|
|
|
TOTAL (A) |
10616.380 |
22718.600 |
23132.830 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
7392.130 |
15188.920 |
13610.960 |
|
|
|
Purchase of Stock In Trade |
259.900 |
1388.220 |
6186.940 |
|
|
|
Employee benefits expenses |
672.670 |
1215.130 |
645.930 |
|
|
|
Other Expenses |
2280.070 |
4727.460 |
4099.700 |
|
|
|
Preliminary Expenses Written Off |
0.220 |
10.750 |
7.350 |
|
|
|
Changes in inventories of Finished goods, work in progress and stock
in trade |
146.150 |
1606.560 |
(4827.380) |
|
|
|
TOTAL (B) |
10751.140 |
24137.040 |
19723.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(134.760) |
(1418.440) |
3409.330 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1015.460 |
4740.340 |
1921.960 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(1150.22) |
(6158.780) |
1487.370 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1388.300 |
1991.820 |
1077.760 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(2538.520) |
(8150.600) |
409.610 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.250 |
(864.890) |
126.770 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(2538.770) |
(7285.710) |
282.840 |
|
|
|
|
|
|
|
|
|
|
Prior Period Adjustment - Income Tax and Others |
(0120) |
(6.820) |
5.410 |
|
|
|
|
|
|
|
|
|
|
Profit / (Loss)
for the Period /Year |
(2538.890) |
(7292.530) |
288.250 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(5710.250) |
1582.280 |
1494.030 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
200.000 |
|
|
|
Equity Shares |
0.000 |
0.000 |
0.000 |
|
|
|
Preference Shares |
0.000 |
0.000 |
0.000 |
|
|
|
Tax on Proposed Dividend |
0.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(8249.140) |
(5710.250) |
1582.280 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods and Services |
1298.150 |
1389.630 |
797.530 |
|
|
TOTAL EARNINGS |
1298.150 |
1389.630 |
797.530 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
772.470 |
3450.710 |
3248.170 |
|
|
|
Stores & Spares |
45.420 |
185.560 |
205.820 |
|
|
|
Capital Goods |
0.000 |
108.470 |
34.880 |
|
|
TOTAL IMPORTS |
817.890 |
3744.740 |
3488.870 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(108.14) |
(310.34) |
25.12 |
|
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 |
30.09.2012 (18 Months) |
31.03.2011 |
|
PAT / Total Income |
(%) |
(23.91)
|
(32.07)
|
1.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(24.06)
|
(36.29)
|
1.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.04)
|
(24.76)
|
1.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.01
|
(120.68)
|
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(12.47)
|
453.42
|
3.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.50
|
0.56
|
0.73 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
30.09.2012 |
30.09.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
234.760 |
234.760 |
234.760 |
|
Reserves & Surplus |
7,059.900 |
(167.220) |
(2,737.920) |
|
Net
worth |
7,294.660 |
67.540 |
(2,503.160) |
|
|
|
|
|
|
long-term borrowings |
4,947.060 |
5,019.900 |
2,693.660 |
|
Short term borrowings |
19,206.660 |
25,604.360 |
28,529.950 |
|
Total
borrowings |
24,153.720 |
30,624.260 |
31,223.610 |
|
Debt/Equity
ratio |
3.311 |
453.424 |
(12.474) |
%20LIMITED%20-%20254932%2010-Mar-2014_files/image022.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
30.09.2012 |
30.09.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
22,968.930 |
22,460.580 |
10,552.320 |
|
|
|
(2.213) |
(53.018) |
%20LIMITED%20-%20254932%2010-Mar-2014_files/image024.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
30.09.2012 |
30.09.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
22,968.930 |
22,460.580 |
10,552.320 |
|
Profit After Tax |
282.840 |
(7,285.710) |
(2,538.770) |
|
|
1.23% |
(32.44%) |
(24.06%) |
%20LIMITED%20-%20254932%2010-Mar-2014_files/image026.gif)
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
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 |
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 |
No |
|
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 |
No |
UNSECURED LOAN
|
Particular |
Rs.
In Millions 30.09.2013 |
Rs.
In Millions 30.09.2012 |
|
Long term
borrowings |
|
|
|
Foreign Currency Term Loan |
100.000 |
494.190 |
|
Short-term
borrowings |
|
|
|
Loans and
Advances from other parties repayable on demand from:- |
|
|
|
Related Parties (Including Body Corporates) |
25.900 |
23.900 |
|
Body Corporate |
3.350 |
3.350 |
|
Directors |
35.730 |
43.890 |
|
Term Loan from
Banks |
|
|
|
- Rupee Term Loan |
1778.980 |
1739.590 |
|
- Foreign Currency Term Loan |
233.120 |
262.890 |
|
|
|
|
|
TOTAL |
2177.080 |
2567.810 |
CORPORATE
INFORMATION
Electrotherm
(India) Limited (the Company) is a listed public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956.The Company is
engaged in the Manufacturing of Electronic furnaces and other capital
equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots,
Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and
services relating to Electric furnaces, other capital equipments and battery
operated vehicles.
HIGH COURT OF
GUJARAT
STAMP NUMBER No. 1204 of 2010 (GROUP
01197-01204) IN SPECIAL CIVIL APPLICATION / 6298 / 2008 /
(DIPOSED) ON : 18.03.2010
OFFICE
DETAILS
COURT
PROCEEDINGS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATIONS
During the year ended
on 30th September, 2013, the total revenue of the Company is
Rs.10616.380Millions compared to revenue of` Rs.22718.600 Millions of previous
financial year. The Loss for the year is Rs. 2538.890 Millions against the Loss
of Rs.7292.530 Millions of the previous
financial year.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
OUTLOOK / OVERVIEW OF THE ECONOMY:
GLOBAL AND
DOMESTIC SCENARIO :
FY 12-13 was once
again an extremely challenging year for the company. The overall demand for
steel remained muted during the year on account of overall slowdown in the
Indian economy and a serious slowdown in the infrastructure and construction
sector.
The overall
economic landscape is not likely to change for the better in the immediate
future and see another challenging year. This apprehension stems from the fact
that the global economy though improving, is witnessing a very slow turnaround.
On the domestic front, high inflation, increased current account deficit and
controlling monetary policies have slowed the consumption demand. The high
interest rate scenario will ensure that there is a slow recovery in the
infrastructure and construction sector. Even though the depreciation of the
rupee will provide price protection, the overall demand situation is not
expected to change dramatically in the immediate future.
INDUSTRY STRUCTURE
AND DEVELOPMENTS :
ENGINEERING,
CAPITAL EQUIPMENT AND PROJECTS DIVISION:
The continued
slowdown in the Indian economy and in the infrastructure and construction sector
continued to negatively impact the addition of new capacities for steel making.
The demand for long products (TMT bars and structures) remained extremely low
during the year thereby not allowing new plants to be set up. In fact, for
existing small and medium sized plants, capacity utilization remained at a very
low level throughout the year. The negative view of the banks towards the steel
sector also made it difficult for the promoters/ companies to raise funds for
their capacity expansion.
In spite of
extremely challenging situation for the capital goods sector in general, the
engineering and projects division recorded sales of approximately Rs.3879.200
Milloins in the twelve month period ending on September, 2013.
The execution of
the new strategy which started two years back has started producing results in
terms of the revenue growth. The company had introduced billet casters for mini
steel plants two years back. The demand for this product picked up during the
year and the company has already procured more than 80 orders since its launch
in 2011. This, the company believes is a path breaking product which will not
only allow the mini steel plants to transit from ingot making to billet making
but also help them in improving their profitability substantially through
benefits of higher price realization and cost savings through direct rolling.
Given the huge savings in the direct rolling process, the company not only
expects the new mini steel plants being set up to install a caster with
induction melting furnaces but also most existing players to go for this
equipment in their existing setups. As envisaged during the development phase
of this product, it is turning out to be a huge opportunity for the company and
the company now is more confident to achieve substantially more revenues from
this product over the next 3 to 5 years.
BIS changed the
norms for quality of long products and made them more stringent and comparable
with the world standards. However, the implementation is still awaited. As a
preparation for this change, the company has already successfully launched and
commissioned its first refining equipment ‘ERF’ in South India with the
patented technology for desulphurization and dephosphorousization and has
received an extremely positive response from the industry. The company now
expects a majority of the large sized induction based mini steel plants to add
this equipment to their existing plants to meet the more stringent norms
proposed by BIS. This is also a huge opportunity for the company and the
company expects substantial revenue to come from this product over the next
five years as the mini-steel makers will look to become BIS
new-norms-compliant.
The export market
continues to generate good revenues for the company. Africa, Saudi Arabia,
Middle East and Iran have emerged as key exports market and are expected to
continue to generate sizeable demands going forward also. Exports have
contributed substantially to the revenues of the engineering division in the
year gone by and expect this trend to continue in the medium-term.
The various
productivity improvement equipments introduced by the company in the last two
years also have been lapped up by the market and are continuing to generate
good revenues for the division.
The company achieved
the highest turnover ever since its inception in 1983 during the twelve month
period ending on March 2013for its Engineering division and even though the
capital goods industry is going through a slowdown, the company expects to
surpass this turnover during the twelve months period ending on March, 2014.
Substantial new
steel making capacities are expected to be created over the next five years as
per the projections made by the Government and various industry bodies. A
substantial proportion of this new capacity will be through the induction
furnace route. The company remains confident of capturing a major market share
of this new demand.
STEEL DIVISION:
The year gone by
was once again a difficult year for this division of the company. The situation
in Hospet Bellary area with respect to iron ore mining has improved although at
a very slow pace. The operationalization of the ‘A’ category and certain ‘B’
category mines have eased the raw material situation for the plants operating
in West and South India. However, on account of the lower availability, the
prices have remained high affecting profitability. The demand for the finished
products has also been seriously impacted on account of overall slowdown in the
economy and more so in the infrastructure and the construction sector. This has
put pressure on the prices of the finished goods which have remained on the
lower side almost during the entire year. With more and more beneficiation and
pillarization plants coming up in various regions across India, the company
expects that the supply situation with respect to iron ore/ pellets to improve
going forward. The finished goods prices, however, have seen an increase on
account of Rupee depreciation. With imports reducing on account of Rupee
depreciation, the prices going forward are expected to remain firm and may see
further increase as and when the infrastructure sector improves.
DUCTILE IRON PIPE
DIVISION:
The demand for
Ductile Iron Pipes picked up once again during the year gone by. The prices which
had fallen substantially on account of entry of newer players in the year 2011
has seen a major increase in the last 6 months. With price of coke expected to
remain stable and the availability of iron ore fines improving from the Hospet
region, the profitability of the pipe division is expected to further improve
going forward. The order book situation as on September ‘13 end is very healthy
and this demand is expected to continue in the near foreseeable future.
ELECTRIC VEHICLE
DIVISION:
During the year
gone by the Electric Vehicle division crossed a landmark total till date sales
of 100,000 two-wheelers. This is reflection of the success of vehicles, which
truly offer customers a combination of the most advanced technology, latest
innovative and elegant designs and protection against soaring petrol price and
pollution. Today, Indian Electric Vehicle Industry is passing through a very
challenging phase and at YO bykes, are also facing the toughest time ever. The
company see this as a temporary phase, as moving ahead foresee exponential
growth for EV Industry in India. With the rising fuel prices in the
international markets and the announcement of National Electric Mobility
Mission Plan 2020, anticipating steep hike in demand for EV’s in India.
VIEW INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10327606 |
29/12/2011 |
4,628,600,000.00 |
CENTRAL BANK OF
INDIA |
MID CORPORATE
FINANCE BRANCH, CENTRAL BANK BUILDI |
B29228582 |
|
2 |
10317944 |
18/11/2011 |
2,000,000,000.00 |
INDIAN OVERSEAS
BANK |
ASHRAM ROAD
BRANCH, SHARAD SHOPPING CENTRE, OPP. |
B25413303 |
|
3 |
10317950 |
18/11/2011 |
1,000,000,000.00 |
INDIAN OVERSEAS
BANK |
ASHRAM ROAD
BRANCH, SHARAD SHOPPING CENTRE,, OPP. |
B25415217 |
|
4 |
10321481 |
12/11/2011 |
2,784,700,000.00 |
CANARA BANK |
PRIME CORPORATE
BRANCH,104,JYOTI COMMERCIAL COMPLE |
B27073931 |
|
5 |
10323332 |
24/10/2011 |
1,810,000,000.00 |
BANK OF INDIA |
AHMEDABAD LARGE
CORPORATE BRANCH, 2ND FLOOR, BOI |
B27942994 |
|
6 |
10313190 |
19/10/2011 |
495,300,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA, Guj |
B23532542 |
|
7 |
10318007 |
03/10/2011 |
540,000,000.00 |
DENA BANK |
188A ASHRAM
ROAD, DENA LAXMI BUILDING, AHMEDABAD, |
B25432139 |
|
8 |
10314943 |
29/09/2011 |
180,200,000.00 |
ORIENTAL BANK OF
COMMERCE |
"NEEL
KAMAL",OPP SALES INDIA,ASHRAM ROAD, AHMEDAB |
B24214470 |
|
9 |
10314939 |
28/09/2011 |
36,000,000.00 |
BANK OF BARODA |
1ST FLOOR, BANK OF
BARODA TOWERS, OPP LAW GARDEN, |
B24213126 |
|
10 |
10307836 |
22/09/2011 |
1,000,000,000.00 |
INDIAN OVERSEAS
BANK |
ASHRAM ROAD
BRANCH, SHARAD SHOPPING CENTRE,, OPP. |
B21281084 |
* Date of charge modification
FIXED ASSETS
- Free Hold
Land
- Leasehold
Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Vehicles
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. 61.93 |
|
|
1 |
Rs. 102.38 |
|
Euro |
1 |
Rs. 85.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
|
11 |
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.