MIRA
INFORM REPORT
|
Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
CAUVERY IRON AND STEEL (INDIA) LIMITED (w.e.f.20.04.1999) |
|
|
|
|
Formerly Known
As : |
CAUVERY IRON AND STEEL LIMITED (w.e.f.01.07.1996) CAUVERY IRON AND STEEL PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
60/2, Pan Bazar, Secunderabad – 500003, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
05.02.1991 |
|
|
|
|
Com. Reg. No.: |
01-012285 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 52.984
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U27109AP1991PLC012285 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDC01860F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCC3576F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer and Dealer of all kinds of Iron and Steel Products. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3677000 |
|
|
|
|
Status : |
Moderate |
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|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by thin net
profit margins, stretched capital structure and tight liquidity position of
the company. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may grow
4.7 % in the current financial year, lower than the official estimate of 4.9 %,
Fitch Rating said. The global rating agency expects the economy to pick up in
the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Cash Credit : B |
|
Rating Explanation |
Risk prone credit quality and very high
credit risk. |
|
Date |
June 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Letter of Credit : A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
June 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-40-27840370)
LOCATIONS
|
Registered Office : |
60/2, Pan Bazar, Secunderabad – 500003, Andhra Pradesh, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
D-Block, 5th Floor, Surya Towers, Secunderabad – 500037, Andhra Pradesh, India |
|
Tel. No.: |
91-40-27840370-73 |
|
Fax No.: |
91-40-27840375 |
|
|
|
|
Admin Office : |
B-77 and C-53, APIE Balanagar, Hyderabad – 500037, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23776953 |
|
|
|
|
Integrated Steel
Plant : |
Khajapur Village, Shankarampet Mandal, Medak, Andhra Pradesh, India |
|
Tel. No.: |
91-8452-247012/ 200018 |
|
Fax No.: |
91-8452-247022 |
DIRECTORS
AS ON 30.09.2013
|
Name : |
Mr. Ashok Kumar Gupta |
|
Designation : |
Managing director |
|
Address : |
141, Balamrai Housing Society, Mahendra Hills East, Marredpally,
Secunderabad – 500003, Andhra Pradesh, India |
|
Date of Birth/Age : |
14.02.1944 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
05.02.1991 |
|
PAN No.: |
AESPG3807R |
|
DIN No.: |
01872512 |
|
|
|
|
Name : |
Mr. Bhupesh Gupta |
|
Designation : |
Director |
|
Address : |
141, Balamrai Housing Society, Mahendra Hills East, Marredpally,
Secunderabad – 500003, Andhra Pradesh, India |
|
Date of Birth/Age : |
27.11.1973 |
|
Qualification : |
MBA |
|
Date of Appointment : |
02.02.1993 |
|
PAN No.: |
AEUPG2193N |
|
DIN No.: |
01872593 |
|
|
|
|
Name : |
Shaloo Gupta |
|
Designation : |
Director |
|
Address : |
141, Balamrai Housing Society, Mahendra Hills East, Marredpally,
Secunderabad – 500003, Andhra Pradesh, India |
|
Date of Birth/Age : |
20.04.1975 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
01.01.2005 |
|
DIN No.: |
01895391 |
|
|
|
|
Name : |
Mr. Prempal Gupta |
|
Designation : |
Director |
|
Address : |
1-8-343/A, 337/A and B-3, IAL Colony, Manubhum Samukh, Begumpet, Hyderabad
– 500016, Andhra Pradesh, India |
|
Date of Birth/Age : |
01.04.1942 |
|
Qualification : |
Mech Eng |
|
Date of Appointment : |
05.02.1991 |
|
PAN No.: |
AFZPG2442N |
|
DIN No.: |
02245468 |
|
|
|
|
Name : |
Mr. Dinesh Gupta |
|
Designation : |
Director |
|
Address : |
Plot No. 506, Samukha India Airlines, Paigh Colony, Secunderabad –
500003, Andhra Pradesh, India |
|
Date of Birth/Age : |
26.10.1977 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
01.04.2001 |
|
PAN No.: |
AFZPG2450G |
|
DIN No.: |
02613058 |
|
|
|
|
Name : |
Mr. Sudhir Kumar Samarendra Narayan |
|
Designation : |
Director |
|
Address : |
N-2/77, IRC, Village Nayapalli, Bhubaneswar - 751015, Orissa,
India |
|
Date of Birth/Age : |
07.07.1943 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
29.06.2010 |
|
DIN No.: |
00516687 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
NOTE: SHAREHOLDING DETAILS FILE ATTACHED
AS ON 30.09.2013
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Bodies
corporate |
17.84 |
|
Directors
or relatives of directors |
82.16 |
|
|
|
|
Total |
100.00 |
%20LIMITED%20-%20268015%2027-May-2014_files/image002.gif)
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Dealer of all kinds of Iron and Steel Products. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
· City Union Bank Limited 5-4-94, Lala Landmark, M.G Road, Ranigunj, Secunderabad - 500003, Andhra Pradesh, India · The Karur Vysya Bank Limited 5-8-363 to 365, First Floor, Chirag Ali Lane, Abids, Hyderabad - 500001, Andhra Pradesh, India · State Bank of India Ashok Myhome Chambers, Commercial Branch, S P Road, Secunderabad - 500003, Andhra Pradesh, India · Andhra Bank Kachiguda Branch, Hyderabad, Andhra Pradesh, India |
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Facilities : |
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|
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Banking
Relations : |
-- |
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|
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|
Auditors : |
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|
Name : |
Arvind Jain and Associates Chartered Accountants |
|
Address : |
25 to 29, Hydri Complexpan Bazar, Secunderbad, Andhra
Pradesh, India |
|
Income-tax
PAN of auditor or auditor's firm : |
ACOPJ9666M |
CAPITAL STRUCTURE
AFTER 30.09.2013
Authorised Capital : Rs. 100.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 67.143
Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,298,400 |
Equity Shares |
Rs. 10/- each |
Rs. 52.984
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
52.984 |
52.984 |
48.870 |
|
(b) Reserves & Surplus |
803.880 |
784.060 |
564.154 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
62.500 |
0.000 |
10.200 |
|
Total
Shareholders’ Funds (1) + (2) |
919.364 |
837.044 |
623.224 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1255.987 |
1521.156 |
1179.301 |
|
(b) Deferred tax liabilities (Net) |
81.475 |
77.670 |
44.848 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
1337.462 |
1598.826 |
1224.149 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1526.534 |
1229.982 |
659.866 |
|
(b)
Trade payables |
676.792 |
293.947 |
143.404 |
|
(c)
Other current liabilities |
361.861 |
3.563 |
0.000 |
|
(d) Short-term
provisions |
6.650 |
7.474 |
17.167 |
|
Total Current
Liabilities (4) |
2571.837 |
1534.966 |
820.437 |
|
|
|
|
|
|
TOTAL |
4828.663 |
3970.836 |
2667.810 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2395.366 |
1817.728 |
433.504 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
995.418 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
12.772 |
12.150 |
12.150 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
40.978 |
48.268 |
16.390 |
|
(e) Other
Non-current assets |
0.000 |
377.226 |
0.000 |
|
Total Non-Current
Assets |
2449.116 |
2255.372 |
1457.462 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1597.719 |
1129.085 |
616.270 |
|
(c)
Trade receivables |
689.305 |
531.671 |
534.514 |
|
(d) Cash
and cash equivalents |
6.995 |
2.752 |
14.558 |
|
(e)
Short-term loans and advances |
85.528 |
51.956 |
45.006 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
2379.547 |
1715.464 |
1210.348 |
|
|
|
|
|
|
TOTAL |
4828.663 |
3970.836 |
2667.810 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
6576.452 |
4773.511 |
4592.623 |
|
|
|
Other Income |
10.086 |
6.193 |
2.138 |
|
|
|
TOTAL (A) |
6586.538 |
4779.704 |
4594.761 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1481.660 |
359.151 |
307.817 |
|
|
|
Purchases of Stock-in-Trade |
4532.708 |
4277.114 |
3957.542 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(177.743) |
(297.000) |
7.652 |
|
|
|
Employees benefits expense |
16.971 |
27.782 |
11.918 |
|
|
|
Other expenses |
262.525 |
227.340 |
148.179 |
|
|
|
TOTAL (B) |
6116.121 |
4594.387 |
4433.108 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
470.417 |
185.317 |
161.653 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
353.830 |
114.947 |
68.957 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
116.587 |
70.370 |
92.696 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
85.988 |
33.016 |
21.620 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
30.599 |
37.354 |
71.076 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10.456 |
40.296 |
55.695 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
20.143 |
(2.942) |
15.381 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
3.80 |
(0.45) |
3.15 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.31 |
(0.06) |
0.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.47 |
0.78 |
1.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.64 |
0.94 |
4.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
0.04 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.03 |
3.29 |
2.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.93 |
1.12 |
1.48 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
48.870 |
52.984 |
52.984 |
|
Reserves & Surplus |
564.154 |
784.060 |
803.880 |
|
Share Application money
pending allotment |
10.200 |
0.000 |
62.500 |
|
Net
worth |
623.224 |
837.044 |
919.364 |
|
|
|
|
|
|
long-term borrowings |
1179.301 |
1521.156 |
1255.987 |
|
Short term borrowings |
659.866 |
1229.982 |
1526.534 |
|
Total
borrowings |
1839.167 |
2751.138 |
2782.521 |
|
Debt/Equity
ratio |
2.951 |
3.287 |
3.027 |
%20LIMITED%20-%20268015%2027-May-2014_files/image004.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4592.623 |
4773.511 |
6576.452 |
|
|
|
3.939 |
37.770 |
%20LIMITED%20-%20268015%2027-May-2014_files/image006.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4592.623 |
4773.511 |
6576.452 |
|
Profit/ (Loss) |
15.381 |
(2.942) |
20.143 |
|
|
0.33% |
(0.06%) |
0.31% |
%20LIMITED%20-%20268015%2027-May-2014_files/image008.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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10414479 |
12/02/2013 |
75,000,000.00 |
THE KARUR VYSYA BANK LIMITED |
5-8-363 TO 365, CHIRAG ALI LANE , ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA |
B71689848 |
|
2 |
10344052 |
07/03/2013 * |
595,000,000.00 |
STATE BANK OF INDIA |
ASHOK MYHOME CHAMBERS, COMMERCIAL BRANCH, S P ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
B72181233 |
|
3 |
10254302 |
18/04/2012 * |
220,000,000.00 |
THE KARUR VYSYA BANK LIMITED |
5-8-363 TO 365, FIRST FLOOR, CHIRAG ALI LANE, ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA |
B38593158 |
|
4 |
10221584 |
07/01/2013 * |
600,000,000.00 |
CITY UNION BANK LIMITED |
5-4-94,LALA LAND MARK, M.G.ROAD, RANI GUNJ, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
B69190130 |
|
5 |
10210005 |
16/10/2010 * |
1,600,000,000.00 |
STATE BANK OF INDIA COMMERCIAL BRANCH SECUNDERABAD |
ASHOKA MY HOME CHAMBERS, S.P.ROAD SECUNDERABAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
A97730154 |
|
6 |
80016465 |
27/12/2013 * |
810,000,000.00 |
CITY UNION BANK LIMITED |
SECUNDERABAD
BRANCH, 5-4-94, LALA LAND MARK, M. G |
B96512595 |
|
7 |
90132443 |
06/06/2005 * |
35,000,000.00 |
CITY UNION BANK LIMITED |
DHANDA HOUSE, M. G. ROAD, SECUNDERABAD, ANDHRA PRADESH, INDIA |
- |
|
8 |
90132408 |
26/07/1999 * |
35,000,000.00 |
CITY UNION BANK LIMITED |
DHANDA HOUSE, M. G. ROAD, SECUNDERABAD, ANDHRA PRADESH, INDIA |
- |
|
9 |
90132329 |
01/10/1996 * |
35,000,000.00 |
CITY UNION BANK LIMITED |
55, M. G. ROAD, SECUNDERABAD, ANDHRA PRADESH, INDIA |
- |
|
10 |
90132066 |
06/01/1995 * |
5,000,000.00 |
CITY UNION BANK LIMITED |
55, M. G. ROAD, SECUNDERABAD, ANDHRA PRADESH, INDIA |
- |
|
11 |
90132038 |
01/10/1996 * |
18,500,000.00 |
CITY UNION BANK LIMITED |
DHANDA HOUSE, M. G. ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
- |
|
12 |
90131891 |
12/06/1993 |
2,500,000.00 |
CITY UNION BANK LIMITED |
DHANDA HOUSE, M. G. ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA |
- |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Rupee term loans from others |
95.186 |
0.000 |
|
Loans and advances from others |
8.086 |
0.000 |
|
Other loans and advances |
2.689 |
5.035 |
|
SHORT TERM BORROWINGS |
|
|
|
Loans and advances from others |
0.000 |
4.015 |
|
|
|
|
|
Total |
105.961 |
9.050 |
GENERAL REVIEW
During the year the turnover of the company has grown from
Rs.4773.500 Millions to Rs.6576.400 Millions showing an increase of around 38%.
The Net Profit stood at 30.600 Millions as against 37.300 Millions in the
previous year as a result of increase in depreciation charge from 33.000
Millions to 86.000 Millions. The Interest and finance charge has also increased
from 110.000 Millions to 353.800 Millions.
INTEGRATED STEEL
PROJECT
With the timely support of the Banks, the Integrated Steel Project of the company has been commissioned and the trial run for the manufacturing of the TMT has started.
The Captive Power Plant of 15 MW commissioned last year has started working successfully and SMS Plant is also working to full capacity. All the three Kilns of 100 tpd each are working satisfactorily.
After overcoming the initial teething problems in the ISP division, the production of billets stabilized during the year. The 15MW Captive power plant of the company enabled availability of continuous power despite power cuts from the government.
However, owing to the increase in the raw material costs, the margins have come under pressure as selling price of billets have not shown corresponding increase. Due to the weak market conditions in the Iron and steel industry and the slowdown in the infrastructure sector, the Billets could not command remunerative price in the market. The interest and finance costs saw a steep increase from Rs 110.000 Millions to Rs 350.000 Millions on account of the charge on interest to the revenue account during the year upon commissioning of the plant .The company has serviced the high finance costs to banks including repayment of loans commencing in 2011 while the benefits of full commissioning of the plant is expected to accrue from the current financial year. This has caused strain in the liquidity position.
To meet the additional working capital requirements which have gone up during the current financial year, applications have been submitted for enhancement of the Limits to the company’s bankers. The Company expects the liquidity to ease once the enhanced Limits are released from banks. However since the working capital limits are not forthcoming and faced with the increase in raw material costs by 18% due to Levy of Import duty and the fast deteriorating rupee as also due to the Unfavorable Market conditions leading to drop in the Finished products prices by more than 13% and the Slowdown in the general economic conditions has pressed the company into further liquidity crunch in the current financial Year.
In view of the strained financial Position of the company it
is necessary to go for restructuring of the Accounts with the Banks for the ISP
division of the company. The way forward restructuring of the Accounts by the
banks will enable the company to withstand the Current unfavorable conditions
and the directors are confident of recovery with the support of the banks.
FUTURE OUTLOOK
The company expects to post better performance in the current financial year upon expectation of improvement in market conditions and with the upon commissioning of the rolling Mill the sales of the TMT bars in the current financial year the margins are likely to improve for the current financial year.
The company would sustain the difficult period owing to the
availability of Captive power which enabled the company to take production
without many breaks also ensuing benefits of savings in the energy costs.
FIXED ASSETS:
· Land
Buildings
Plant
and equipment
Factory
equipments
Other
plant and equipment
Furniture
and fixtures
Vehicles
Office
equipment
Computer
equipments
Other
equipments
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. 58.59 |
|
|
1 |
Rs. 98.66 |
|
Euro |
1 |
Rs. 79.81 |
INFORMATION DETAILS
|
Information
Gathered by : |
JML |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.