MIRA
INFORM REPORT
|
Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
PRAKASH INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
15 Km. Stone, Delhi Road, Hissar – 125044, Haryana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.07.1980 |
|
|
|
|
Com. Reg. No.: |
05-010724 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 1344.900
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27109HR1980PLC0107247 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Rigid PVC Pipes, Wire Rod, TMT Bars and Ferro Alloys and also Generation of Power. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 83700000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-established company having satisfactory track
record. The company possesses a favourable financial profile marked by comfortable
capital structure and liquidity position during 2013. The ratings also take into consideration the declining profitability
margins, past history of debt restructuring and legal risk with respect to
the on-going Central Bureau of Investigation (CBI) enquiry on Coal Mining. However, trade relations are fair. Business is active. Payment terms
are reported as usually correct. In view of experience of the promoters and consistent track record of
profitable operations, the subject can be considered for business dealings at
usual 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may grow
4.7 % in the current financial year, lower than the official estimate of 4.9 %,
Fitch Rating said. The global rating agency expects the economy to pick up in
the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Issuer Rating : BBB+ (IS) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
January 07, 2014 |
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 BY
|
Name : |
Mr. Mahavir |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-11-28062115/ 16 |
|
Date : |
27.05.2014 |
LOCATIONS
|
Registered Office : |
15 Km. Stone, Delhi Road, Hissar – 125044, Haryana, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Srivan Bijwasan, New Delhi – 110061, India |
|
Tel. No.: |
91-11-25305800/ 28062115/ 16 |
|
Fax No.: |
91-11-28062119 |
|
E-Mail : |
|
|
|
|
|
Works : |
Located at: · Champa (Chhattisgarh) · Chotia (Chhattisgarh) · Raipur (Chhattisgarh) · Kashipur (Uttarakhand) · Koira, Distt. Koenjhar (Odisha) · Muppandal (Tamilnadu) |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. V. P. Agarwal |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
57 Years |
|
Qualification : |
B.Com. |
|
Experience : |
34 Years |
|
|
|
|
Name : |
Mr. Vikram Agarwal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Dr. S. L. Keswani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. C. Mehra |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Ram K. Vepa |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manish Bahl |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Piyoosh Goyal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. L. Pareek |
|
Designation : |
Whole – time Director |
|
|
|
|
Name : |
Mr. Vipul Agarwal |
|
Designation : |
Whole – time Director |
|
|
|
|
Name : |
Mr. P. L. Gupta |
|
Designation : |
Whole – time Director |
KEY EXECUTIVES
|
Name : |
Mr. Mahavir |
|
Designation : |
Accounts Manager |
|
|
|
|
Name : |
Mr. Manoj Aggarwal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7165528 |
5.33 |
|
|
55356862 |
41.16 |
|
|
62522390 |
46.49 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
62522390 |
46.49 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
4351387 |
3.24 |
|
|
3785 |
0.00 |
|
|
739666 |
0.55 |
|
|
2235049 |
1.66 |
|
|
7329887 |
5.45 |
|
|
|
|
|
|
35244524 |
26.21 |
|
|
|
|
|
|
18258114 |
13.58 |
|
|
10348873 |
7.69 |
|
|
784726 |
0.58 |
|
|
784726 |
0.58 |
|
|
64636237 |
48.06 |
|
Total Public shareholding
(B) |
71966124 |
53.51 |
|
Total (A)+(B) |
134488514 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
134488514 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million 
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Rigid PVC Pipes, Wire Rod, TMT Bars and Ferro Alloys and also Generation of Power. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
· Corporation Bank · Kotak Mahindra Bank |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Chaturvedi and Partners Chartered Accountants |
|
|
|
|
Enterprise on which
key management personnel and/or their relatives exercise significant
influence with whom transactions have taken place during the year : |
· Primenet Global Limited · Surya Roshni Limited · Prakash Natural Resources Limited ·
Vanshi Farms Private Limited |
|
|
|
|
Joint Venture
Entities : |
· Madanpur (North) Coal Company Private Limited ·
Fatehpur Coal Mining Company Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
170000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1700.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
134488514 |
Equity Shares |
Rs. 10/- each |
Rs. 1344.900
Millions |
|
|
|
|
|
(a) Reconciliation
of shares outstanding at the beginning and end of the reporting period.
|
Particulars |
31.03.2013 |
|
|
|
No. of Shares |
Rs. in Millions |
|
At the beginning of the year |
134488514 |
1344.900 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the end of the year |
134488514 |
1344.900 |
(b) Terms/rights attached to equity shares
The Company has
only one class of equity shares having par value of 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. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company after distribution of all the
preferential amounts, in proportion to their shareholding.
(c) Details of shareholders
holding more than 5% shares in the Company.
|
Name of the Shareholders |
31.03.2013 |
|
|
|
No. of Shares |
% of holding |
|
Amarjoti Vanijya Private Limited |
10375750 |
7.71 |
|
GMK Builders Private Limited |
8164800 |
6.07 |
(d) Foreign Currency Convertible Bonds (FCCB) holders have an option to
get their bonds converted into equity shares of the Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1344.900 |
1344.900 |
1344.900 |
|
(b) Reserves & Surplus |
19591.400 |
18236.300 |
15843.000 |
|
(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) |
20936.300 |
19581.200 |
17187.900 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7885.300 |
8621.500 |
6008.100 |
|
(b) Deferred tax liabilities (Net) |
815.200 |
806.200 |
802.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
140.700 |
127.200 |
113.600 |
|
Total Non-current
Liabilities (3) |
8841.200 |
9554.900 |
6923.700 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
324.200 |
114.200 |
198.500 |
|
(b)
Trade payables |
478.000 |
364.800 |
505.000 |
|
(c)
Other current liabilities |
1776.400 |
1878.600 |
1076.400 |
|
(d) Short-term
provisions |
256.700 |
273.800 |
699.200 |
|
Total Current
Liabilities (4) |
2835.300 |
2631.400 |
2479.100 |
|
|
|
|
|
|
TOTAL |
32612.800 |
31767.500 |
26590.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
17103.300 |
16012.100 |
10462.200 |
|
(ii)
Intangible Assets |
83.000 |
110.000 |
137.000 |
|
(iii) Capital
work-in-progress |
7396.200 |
7953.600 |
8765.300 |
|
(iv)
Intangible assets under development |
501.300 |
464.900 |
358.200 |
|
(b) Non-current Investments |
21.800 |
21.400 |
20.200 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3663.600 |
3128.600 |
3077.900 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
28769.200 |
27690.600 |
22820.800 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current
investments |
134.000 |
482.900 |
250.100 |
|
(b)
Inventories |
2055.900 |
1784.600 |
1623.900 |
|
(c)
Trade receivables |
887.900 |
922.200 |
864.300 |
|
(d) Cash
and cash equivalents |
252.500 |
497.200 |
630.100 |
|
(e)
Short-term loans and advances |
504.600 |
381.200 |
398.000 |
|
(f)
Other current assets |
8.700 |
8.800 |
3.500 |
|
Total
Current Assets |
3843.600 |
4076.900 |
3769.900 |
|
|
|
|
|
|
TOTAL |
32612.800 |
31767.500 |
26590.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
25109.100 |
21069.300 |
16641.000 |
|
|
|
Other Income |
24.600 |
24.600 |
87.300 |
|
|
|
TOTAL (A) |
25133.700 |
21093.900 |
16728.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
17476.800 |
13982.000 |
10125.600 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(105.900) |
(44.900) |
(20.500) |
|
|
|
Employees benefits expense |
1106.600 |
892.800 |
777.800 |
|
|
|
Other expenses |
3369.400 |
2582.600 |
2352.900 |
|
|
|
TOTAL (B) |
21846.900 |
17412.500 |
13235.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3286.800 |
3681.400 |
3492.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
553.300 |
138.600 |
56.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2733.500 |
3542.800 |
3435.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1063.700 |
782.500 |
699.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1669.800 |
2760.300 |
2736.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
20.900 |
78.700 |
65.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1648.900 |
2681.600 |
2670.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
171.400 |
146.100 |
131.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1500.000 |
2500.000 |
2500.000 |
|
|
|
Proposed Dividend |
134.500 |
134.500 |
134.500 |
|
|
|
Tax on Dividend |
22.900 |
21.800 |
21.800 |
|
|
BALANCE CARRIED
TO THE B/S |
162.900 |
171.400 |
146.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
246.600 |
287.900 |
0.000 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
6.200 |
3.100 |
3.900 |
|
|
|
Capital Goods |
0.000 |
7.300 |
6.300 |
|
|
TOTAL IMPORTS |
6.200 |
10.400 |
10.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.00 |
20.00 |
21.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
31.03.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
6404.600 |
5685.600 |
6705.800 |
7170.200 |
|
Total Expenditure |
5513.600 |
4880.700 |
5897.900 |
5917.400 |
|
PBIDT (Excl OI) |
891.000 |
804.900 |
807.900 |
1252.800 |
|
Other Income |
4.100 |
5.800 |
4.500 |
20.800 |
|
Operating Profit |
895.100 |
810.700 |
812.400 |
1273.600 |
|
Interest |
141.500 |
146.800 |
151.300 |
138.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
753.600 |
663.900 |
661.100 |
1134.900 |
|
Depreciation |
282.400 |
296.600 |
301.000 |
297.600 |
|
Profit Before Tax |
471.200 |
367.300 |
360.100 |
837.300 |
|
Tax |
40.600 |
35.200 |
14.800 |
213.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
430.600 |
332.100 |
345.300 |
623.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
430.600 |
332.100 |
345.300 |
623.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.56 |
12.71 |
15.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.65 |
13.10 |
16.44 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.76 |
11.83 |
15.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.14 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.39 |
0.45 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.36 |
1.55 |
1.52 |
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 |
1344.900 |
1344.900 |
1344.900 |
|
Reserves & Surplus |
15843.000 |
18236.300 |
19591.400 |
|
Net
worth |
17187.900 |
19581.200 |
20936.300 |
|
|
|
|
|
|
long-term borrowings |
6008.100 |
8621.500 |
7885.300 |
|
Short term borrowings |
198.500 |
114.200 |
324.200 |
|
Total
borrowings |
6206.600 |
8735.700 |
8209.500 |
|
Debt/Equity
ratio |
0.361 |
0.446 |
0.392 |
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 |
16641.000 |
21069.300 |
25109.100 |
|
|
|
26.611 |
19.174 |
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 |
16641.000 |
21069.300 |
25109.100 |
|
Profit |
2670.800 |
2681.600 |
1648.900 |
|
|
16.05% |
12.73% |
6.57% |
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 |
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 |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
IN
THE HIGH COURT OF DELHI AT NEW DELHI
CS(OS) 23/2013
M/S ERA BUILDSYS LTD ..... Plaintiff
Through: Mr.Navneet Kumar, Advocate
Versus
M/S PRAKASH INDUSTRIES LTD ..... Defendant
Through: Mr.Souvik Mukherjee, Advocate
CORAM:
HON'BLE MR. JUSTICE G.S.SISTANI
O R D E R
23.04.2014
I.A. 211/2013 (u/O.38 Rs, 1/2/5 CPC)
Dismissed as not pressed, at this stage.
CS(OS) 23/2013
Right of the plaintiff to carry out admission /
denial of documents stand closed. Counsel for the plaintiff seeks one last opportunity
to file documents.
For the reasons explained, subject to payment of
costs of Rs.5,000/- to be deposited with the Delhi High Court Lawyers? Welfare
Fund, order dated 16.4.2014 is recalled. Let the documents be filed by the
parties within four weeks.
List the matter before the Joint Registrar for
admission /denial of documents on 8.8.2014.
List the matter before Court on 1.9.2014 for framing
of issues. Parties shall bring suggested issues to Court on the next date of
hearing.
G.S.SISTANI, J
APRIL 23, 2014
ssn
$ 31
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Foreign Currency Convertible Bonds(FCCB) |
4193.400 |
3944.200 |
|
|
|
|
|
Total |
4193.400 |
3944.200 |
PERFORMANCE
During the year, the Company has achieved net sales revenue of Rs.
25130.000 Millions as against Rs. 21090.000 Millions in the previous year.
After providing for interest, depreciation and tax, the net profit of the
Company stands at Rs.1650.000 Millions during the year as against Rs. 2680.000
Millions of previous year.
OPERATIONAL REVIEW
Despite general slowdown in the economic conditions worldwide, the
financial performance of the Company during the year has been reasonably
satisfactory and stable. The operating margins were affected due to disruption
in the supplies of Iron Ore from Odisha on account of restrictions imposed by
the government and temporary closure of many mines. The Company had to source
Iron Ore of poor quality at higher prices, however since the beginning of the
current year the situation has gradually improved and is expected to become
normal in near future. Both in the steel and power segments, the Company has
achieved overall volume growth in production across the divisions, which has
resulted in Company achieving highest ever production levels and substantial
growth in turnover. Further, the power generation capacities commissioned
during the last financial year, stabilized during the year and have been
operating successfully. The additional Sponge Iron Kiln, which was set up in
the later part of the last financial year, contributed significantly towards
cost reduction and integration of capacities. During the later part of the
year, the Company has successfully expanded its Ferro Alloys capacity by
setting up additional furnaces, which shall result in optimum utilization of
surplus power capacities. Captive coal mining operations have been
satisfactory. Rigid PVC Pipes has registered impressive performance and has
achieved record production during the year. The Company's continuous commitment
towards quality has enabled it to create a niche in the market for its
products.
FUTURE PROSPECTS
The Company is further expanding its Sponge Iron capacity by setting up
an additional module, which is expected to be commissioned by the end of this
financial year. The Company continues its efforts to completely integrate its
operations and in this direction, additional capacities in Steel making and
Power generation with Ferro Alloys are under implementation which will cater to
the requirements of the finished Steel segment comprising of Wire Rod, TMT Bars
and Structural resulting in optimum utilisation of the capacities for these
products.
The Company has been allotted iron ore mines in the states of
Chhattisgarh and Odisha, which are expected to be operational towards the end
of the current financial year. Subsequent to the mines becoming operational,
the self-reliant quotient of the Company shall reach the optimal level, making
the Company fully integrated.
In view of the expanded operations and improved supply situation of Iron
Ore and Coal, both in terms of availability and pricing, performance of this
year is expected to be much better.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
As per the World Steel Association, the Indian Steel Industry is
expected to witness a much better performance in the coming years, in line with
its forecast for a global rebound. Although the World Steel Association has
forecasted steel consumption in India to grow at 5 per cent in the current
year, it expects a spurt in the demand in the medium-term if the Indian
government implements its $ 1 trillion infrastructure investment plan in a
timely manner. The steel demand is also expected to be fuelled by monetary
easing expected in the coming years, which shall substantially support
investment activities. Globally also, India has acquired a strong position on
the steel map with its giant steel mills, acquisition of global scale
capacities by players, continuous modernisation and up-gradation of old plants,
improving energy efficiency, and backward integration into global raw material
sources. From the current position of fourth largest crude steel capacity in
the world, India is expected to become the second largest producer of crude
steel in the world by 2015-16. India is maintaining its position as the world's
largest producer of sponge iron with a host of coal based units located in its
mineral-rich states. On the whole, the environment for the Indian Steel
Industry looks promising in the years to come.
SEGMENT WISE / PRODUCT WISE PERFORMANCE /
OUTLOOK
The performance of
the Steel, Power and Mining operations of the Company have been satisfactory
during the year. The additions in the Sponge Iron and Power capacities during
the later part of the last financial year, resulted in significant cost savings
during the year. Out of the total 625 MW power capacity expansion plan, after
successfully commissioning first 100 MW power plant during the last financial
year, the Company is taking up the implementation of the subsequent phase of
100 MW. The capacity utilization in the end products namely, Wire Rod, TMT Bars
and Ferro Alloys was highest during the year. Captive coal mining operations
continued at optimal level throughout the year. Company is also into
manufacture of Rigid PVC Pipes which has further improved upon the performance
and achieved highest ever production levels.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2013
(RS.
IN MILLIONS)
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
6705.800 |
5685.600 |
18796.000 |
|
Other Operating Income |
-- |
-- |
-- |
|
Total Income from
operations (net) |
6705.800 |
5685.600 |
18796.000 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of Material consumed |
4607.000 |
3843.500 |
12784.600 |
|
(b) Purchase of stock in trade |
-- |
-- |
-- |
|
(c) Changes in inventories of finished goods, work in
progress and stock in trade |
100.800 |
(64.800) |
76.800 |
|
(d) Employee benefit expenses |
320.100 |
310.900 |
927.100 |
|
(e) Depreciation and amortization expenses |
301.000 |
296.600 |
880.000 |
|
(f) Other Expenses |
870.000 |
791.100 |
2503.700 |
|
Total Expenses |
6198.900 |
5177.300 |
17172.200 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
506.900 |
508.300 |
1623.800 |
|
Other Income |
4.500 |
5.800 |
14.400 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
511.400 |
514.100 |
1638.200 |
|
Finance costs |
151.300 |
146.800 |
439.600 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
360.100 |
367.300 |
1198.600 |
|
Exceptional
item |
-- |
-- |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
360.100 |
367.300 |
1198.600 |
|
Tax Expenses |
|
|
|
|
- Corporate
Tax |
75.400 |
77.000 |
251.200 |
|
- Minimum
Alternate Tax Credit Adjustment |
(60.600) |
(41.800) |
(160.600) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
345.300 |
332.100 |
1108.000 |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
345.300 |
332.100 |
1108.000 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
1344.900 |
1344.900 |
1344.900 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
-- |
|
Earnings per
share (not annualized) -
Basic |
2.57 |
2.47 |
8.24 |
|
- Diluted |
2.57 |
2.47 |
8.24 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
71966124 |
71966124 |
71966124 |
|
Percentage of Shareholding |
53.51 |
53.51 |
53.51 |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
-- |
-- |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
62522390 |
62522390 |
62522390 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
46.49 |
46.49 |
46.49 |
|
|
Particulars |
Quarter
Ended 31.12.2013 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
9 |
|
|
Disposed of during the quarter |
9 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT – WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
1. Segment Revenue |
|
|
|
|
a. Power |
1020.200 |
933.600 |
2914.700 |
|
b. Steel |
6205.200 |
5179.400 |
17235.100 |
|
c. PVC Pipe and Others |
455.900 |
425.600 |
1375.200 |
|
Total |
7681.300 |
6538.600 |
21525.000 |
|
Less: Inter Segment Revenue |
975.500 |
853.000 |
2729.000 |
|
Total income from operations (net) |
6705.800 |
5685.600 |
18796.000 |
|
|
|
|
|
|
2. Segment Results |
|
|
|
|
Profit/ (loss) before tax and interest |
|
|
|
|
a. Power |
376.300 |
290.400 |
1034.900 |
|
b. Steel |
107.600 |
171.500 |
472.100 |
|
c. PVC Pipe and Others |
27.500 |
52.200 |
131.200 |
|
Total |
511.400 |
514.100 |
1638.200 |
|
Less: Finance Costs |
151.300 |
146.800 |
439.600 |
|
Total Profit Before Tax |
360.100 |
367.300 |
1198.600 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
a. Power |
13544.400 |
13789.200 |
13544.400 |
|
b. Steel |
17401.800 |
17127.400 |
17401.800 |
|
c. PVC Pipe and Others |
335.900 |
369.400 |
335.900 |
|
Total |
31282.100 |
31286.000 |
31282.100 |
NOTES:
1)
The above results have been reviewed by the Audit
Committee and approved by the Board of Directors in their meeting held on 8th
February, 2014. The Auditors have carried out a limited review of the above
results.
2)
Figures have been regrouped / rearranged wherever
considered necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
- Guarantees/Letter of credits issued by banks on behalf of the company |
245.500 |
290.800 |
|
- Disputed demands of Excise Duty /Electricity dues/Lease rentals etc. (Amount paid there against Rs.28.000 Millions (Rs.18.000 Millions)) |
314.400 |
226.600 |
|
|
|
|
|
Total |
559.900 |
517.400 |
FIXED ASSETS:
· Land (Lease hold)
· Land (Free hold)
· Building
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Mouilds and Dies
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 59.06 |
|
|
1 |
Rs. 99.61 |
|
Euro |
1 |
Rs. 80.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
51 |
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.