MIRA INFORM REPORT

 

 

Report Date :

27.11.2014

 

IDENTIFICATION DETAILS

 

Name :

APL APOLLO TUBES LIMITED

 

 

Registered Office :

37, Hargobind Enclave, Vikas Marg, Delhi – 110 092

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

24.02.1986

 

 

Com. Reg. No.:

55-023443

 

 

Capital Investment / Paid-up Capital :

Rs. 234.386 Millions

 

 

CIN No.:

[Company Identification No.]

L74899DL1986PLC023443

 

 

IEC No.:

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Divulged

 

 

PAN No.:

[Permanent Account No.]

Not Divulged

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer, Exporter and Importer of Steel Tubes and Pipes.

 

 

No. of Employees :

2000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (52)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 9300000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established company having fine track record.

 

Profitability of the company has declined during financial year 2014.

 

The rating reflects company’s established track of business operations marked by adequate liquidity position and sound financial of the company.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for normal 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

N E W S

 

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

 

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

 

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

 

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

 

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

 

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

 

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Fund Based Limits =A -

Rating Explanation

Adequate Degree of Safety and Low Credit Risk

Date

2014, September

 

Rating Agency Name

ICRA

Rating

Commercial Paper =A1

Rating Explanation

Strong Degree of Safety and Lowest Credit Risk.

Date

2014, September

 

 

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 31-03-2014.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Deepak Goyal

Designation :

General Manager In Finance

Contact No.:

91-120-4041400

Date :

25.11.2014

 

 

LOCATIONS

 

Registered Office :

37, Hargobind Enclave, Vikas Marg, Delhi – 110 092, India

Tel. No.:

91-11-22373237

Fax No.:

Not Available

E-Mail :

comsec@aplapollo.com

atul@aplapollo.com

query@aplapollo.com

Website :

http://www.aplapollo.com

 

 

Corporate Office :

36, Kaushambi, Near Anand Vihar Terminal, Ghaziabad Delhi-NCR – 201 010, Uttar Pradesh, India

Tel. No.:

91-120-4041400

Fax No.:

91-120-4041444

 

 

Factory 1 :

A-19, Industrial Area, Sikandrabad, District Bulandshahar, Uttar Pradesh, India

 

 

Factory 2 :

No.332-338, Alur Village, Perandapalli, Hosur, Tamilnadu, India

 

 

Warehouses-cum-branches:

Located at:

 

·         Ahmedabad

·         Bengaluru

·         Cochin

·         Faridabad

·         Ghaziabad

·         Goa

·         Himachal Pradesh

·         Hissar

·         Hyderabad

·         Indore

·         Jaipur

·         Kanpur

·         Ludhiana

·         Mumbai

·         Nagpur

·         New Delhi

·         Pune

·         Raipur

·         Rudrapur

·         Surat

·         Vadodara (Proposed)

·         Chennai (Proposed)

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Sanjay Gupta

Designation :

Chairman

Date of Birth/Age :

42 Years

Experience :

20 Years

Date of Appointment :

02.09.2003

 

 

Name :

Mr. Ashok K. Gupta

Designation :

Managing Director

 

 

Name :

Mr. Aniq Husain

Designation :

Director

Date of Birth/Age :

10.07.1953

Qualification :

B. Tech (Mechanical)

Date of Appointment :

16.05.2008

 

 

Name :

Mr. C.S. Johri

Designation :

Director

 

 

Name :

Mr. Rakesh Jinsi

Designation :

Director

Date of Birth/Age :

15.01.1955

Qualification :

B. E. (Electrical)

Date of Appointment :

23.03.2013

 

 

Name :

Mr. Sameer Gupta

Designation :

Director

Date of Birth/Age :

02.11.1977

Qualification :

B. Com(H)

Date of Appointment :

16.05.2008

 

 

Name :

Mr. S.T. Gerela

Designation :

Director

 

 

Name :

Mr. Vinay Gupta

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Deepak Goyal

Designation :

General Manager In Finance

 

 

Name :

Mr. Adhish Swaroop

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Category of Shareholders

 

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1928350

8.23

Bodies Corporate

8325187

35.52

Sub Total

10253537

43.75

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

10253537

43.75

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2299339

9.81

Foreign Institutional Investors

2766132

11.80

Sub Total

5065471

21.61

(2) Non-Institutions

 

 

Bodies Corporate

713491

3.04

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

631799

2.81

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

2356316

10.17

Any Others (Specify)

4364301

18.62

Non Resident Indians

1026227

4.38

Clearing Members

3000000

12.80

Foreign Corporate Bodies

336562

1.44

Hindu Undivided Families

1512

0.01

Sub Total

8065907

36.64

Total Public shareholding (B)

13131378

56.25

Total (A)+(B)

23384915

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

Total (A)+(B)+(C)

23384915

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Steel Tubes and Pipes.

 

 

Products :

·         MS Black Round Tubes

·         Galvanized Iron Tubes

·         Pre Galvanized Tubes

·         Hollow Sections

·         API Tubes 

·         Dynamically Balanced Tubes

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

v      Steel

v      Tubes

v      Pipes

Countries :

Ř       Middle east

Ř       UK

Ř       Germany

Ř       Canada

Ř       USA

 

 

Imports :

 

Products :

v      Raw material

Countries :

Ř       China

Ř       Korea

Ř       Japan

 

 

Products :

v      Machinery

Countries :

Ř       Germany

Ř       Italy

Ř       China

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

v      J.S.W. Steel, Mumbai, Maharashtra, India

 

 

Customers :

v      C and F International GMBH

Wholesalers, Retailers, and Manufacturer

 

 

No. of Employees :

2000 (Approximately)

 

 

Bankers :

·         Axis Bank Limited

·         DBS Bank Limited

·         HDFC Bank Limited

·         ING Vysya Bank Limited

·         State Bank of India

·         Union Bank of India

·         Yes Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Term Loan

 

 

From Bank

939.360

473.940

 

 

 

SHORT TERM BORROWING

 

 

Loans Repayable on Demand

 

 

From Bank

2615.140

2506.750

From Other Parties

 

 

 

 

 

Total

3554.500

2980.690

 

Nature of Security and terms of repayment for Long Term Secured Borrowings:-

 

S. No

Amount of Loan

Terms of Repayment

 

Term Loan amounting Rs. 400.000 million (Previous Year Rs.  480.000 Million

Repayable in 18 unequal quarterly installments commencing from December, 2012. Last installment due on March, 2017. Rate of interest 12.50% p.a as at year end (P.Y. 12.50%)

 

Term Loan amounting Rs. 37.270 million (Previous Year Rs. 112.290 Million).

Repayable in 16 equal quarterly installments commencing from November, 2010. Last installment due on August, 2014. Rate of interest was 9.75% till September 2011 and thereafter it was reset to 12%

 

Term Loan amounting Rs. 400.000 million (Previous Year Rs. NIL).

Repayable in 17 unequal quarterly installments commencing from March,

2015. Last installment due on March, 2019. Rate of interest 12.50% p.a as at year end ( P.Y. Nil)

 

Term Loan amounting Rs. 250.000 million (Previous Year Rs. Nil).

Repayable in 20 unequal quarterly installments commencing from April, 2015. Last installment due on March, 2020. Rate of interest 12.50% p.a as at year end ( P.Y. Nil)

 

Nature of Security for Sub Note No. 1.1 to 1.4 of Note No. 4: Please refer note 7.1

 

 

Term Loan amounting Rs. 34.900 Million (P. Y. Rs. 35.990 Million) is secured against mortgage of Estate Home (residential property under construction) at E-11 (Land-II), Jaypee Greens, Greater Noida (U.P.)

Repayable in 254 monthly installments commencing from October, 2007. Last Installment due on November, 2028. Carries floating rate of interest linked with

Base Rate i.e. base rate+275bps. Rate of Interest 10.75% p.a. as at year end.

 

Various Vehicle Loans total amount Rs. 9.81 Million of hypothecation of respective vehicle.

All loans have 36 monthly installments commencing from various dates, carry

rate of interest between 9.50% to 12.00% P.A.

 

Nature of Security : Bank term loans and working facilities are secured by first pari pasu charge on current assets, movable fixed assets, present and future, of the company and further secured by equitable mortgage on company's land and building situated A-19 Industrial area Sikandarabad, U.P and at 332-338, Alur-Village, Perandapalli - Hosur on first pari pasu basis. These credit facilities are further collaterally secured by corporate guarantee and Land & Building of V S Exim Pvt. Ltd., situated at A-20 Industrial Area, Sikandrabad U.P. and Personal grantee of Mr Sameer Gupta, Mr. Vinay Gupta and Mr Sanjay Gupta (Promoter Directors). However Working Capital Limit for certain banks have been arranged against the security of all present and future movable fixed assets and current assets on first pari pasu charge basis (these Working Capital Limit do not have any charge on immovable fixed assets of the company and collaterals.

 

 

Auditors :

 

Name :

VAPS and Company

Chartered Accountants

Address :

C-42, South Extension Part-II, New Delhi – 110 049, India

 

 

Wholly Owned Subsidiary Companies :

 

Apollo Metalex (Private) Limited

Address: A-2, Industrial Area, Sikandrabad, District Bulandshahar, Uttar Pradesh, India

CIN: U2710DL2006PTC146579

Shri Lakshmi Metal Udyog Limited

Address: No.9 to 11, KIADB Industrial Area, Attibele, Bengaluru – 562 107, Karnataka, India

CIN: U85110DL1994PLC224835

Lloyds Line Pipes Limited

Address: Plot No.M-1, Additional MIDC Area, Murbad, Thane – 421 401, Maharashtra, India

CIN: U27320DL2008PLC223550

 

 

Associates :

·         Apollo Pipes Limited

·         V. S. Exim (Private) Limited

·         APL Infrastructure (Private) Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.10/- each

Rs. 250.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

23438636

Equity Shares

Rs.10/- each

Rs. 234.390 Millions

 

 

 

 

Reconciliation of the number of issued, subscribed and paid-up shares:

 

Particulars

 

No. of Shares

Shares outstanding as at the beginning of the year

22324000

Shares bought back during the year

--

Additions during the year

1115000

Deletion during the year

--

Shares outstanding as at the end of the year

23439000

 

1,115,000 Equity shares were issued on August 13, 2013 upon conversion of equal number of warrants held by Mr. Ashok Kumar Gupta (a promoter group entity) out of total 1,500,000 warrants issued @ ` 145/- on Febuary 14, 2012. (earlier 385,000 warrants were converted in to equal number of Equity shares on March 23, 2013).

 

 

Particulars of Securities convertible into Equity shares issued and fund raised during the current and immediately preceding financial year:

 

Particulars

Amount

(Rs. in millions)

641,953 warrants were converted into equity shares on June 21, 2012 after receipt of remaining 75% subscription amount. These warrants were part of 1,641,953 warrants \ issued @ ` 176/- each to APL Infrastructure Pvt. Ltd. (a promoter group entity) entitling the warrant holder for equal number of Equity Shares having nominal value of ` 10/ each within 18 months from the date of allotment i.e. December 22, 2010. As per SEBI guidelines 25 % subscription amount received before allotment of 1,641,953 warrants amounting ` 72.25 million, further 1,000,000 warrants were converted into qual number of equity shares on March 13, 2012 after receiving remaining 75% subscription amount i.e. 132 million.

84.740

b) 385,000 warrants were converted into equal number of equity shares on March 23, 2013 after receipt of remaining 75% subscription amount.

41.870

c) 1,115,000 warrants were converted into equal number of equity shares on August 13, 2013 after receipt of remaining 75% subscription amount. These above warrants detailed herein above at point No. b & c were part of 1,500,000 warrants

issued @ ` 145/- each warrant to Mr. Ashok Kumar Gupta (considered as promoter group entity) entitling the warrant holder for equal number of Equity Shares having nominal value of ` 10/- each within 18 months from the date of allotment i.e. February 14, 2012. As per SEBI guidelines

25 % subscription amount received before allotment of 1,500,000 warrants made on February 14, 2012 amounting ` 54.38 million.

121.260

 

247.87

3 Details of allotment of securities in the preceding 5 financial years:

i)  a) 4,281,000 Equity Shares were issued on conversion of 2,140,500 warrants on January 23, 2008.

    b) 782,000 Equity Shares were issued on conversion of 391,000 warrants on April 28, 2008

    c) 787,000 Equity Shares were issued on conversion of 393,500 warrants on June 27, 2008.

    d) 370,000 Equity Shares were issued on conversion of 185,000 warrants on April 4, 2009

"These shares were issued on conversion of warrants. The Company issued 3,175,000 warrants @ ` 140/- each to the promoters and other strategic investors entitling them for equal number of Equity Shares and one bonus share each against every warrant having nominal value of ` 10/- each (i.e. warrant holder were entitled for 2 Equity Shares against each warrant they have) within 18 months from the date of allotment i.e. July 5, 2007. Out of total 3,175,000 warrants, subscribers for 65,000 share warrants didn’t exercised their option within 18 months of allotment of warrants and consequently, their initial subscription amount was forfeited."

ii)  1,798,333 Equity shares has been issued to erstwhile shareholders of Shree Lakshmi Metal Udyog Limited for acquiring their 100% Equity shares in a non-cash deal [swap ratio 1 [One] Share of APL Apollo Tubes Limited for every 3 [Three] shares of Shri Lakshmi Metal Udyog Limited] on April 28, 2008.

iii) Equity share issued as underlying security for GDR issue

a) On June 18, 2008 2,941,200 Equity Shares were allotted as underlying securities for 1,470,600 Global Depository Receipts.

b) On July 17, 2008 2,941,150 Equity Shares were allotted as underlying securities for 1,470,575 Global

Depository Receipts.

iv) Warrant Issue : 1,641,953 warrants were issued @ ` 176/- each warrant to promoters entitling them for equal

number of Equity Shares having nominal value of ` 10/- each within 18 months from the date of allotment i.e.

December 22, 2010

a) 1,000,000 Equity Shares were issued on conversion of equal no of warrants on March 13, 2012.

b) 641,953 Equity Shares were issued on conversion of equal no of warrants on June 21, 2012.

v) Warrant Issue : 1,500,000 warrants were issued @ ` 145/- each warrant to promoters entitling them for equal

number of Equity Shares having nominal value of ` 10/- each within 18 months from the date of allotment i.e.

February 14, 2010

a) 385,000 Equity Shares were issued on conversion of equal no of warrants on March 23, 2013.

b) 1,115,000 Equity Shares were issued on conversion of equal no of warrants on August 13, 2013.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

234.390

223.240

212.970

(b) Reserves & Surplus

3020.750

2744.590

2369.210

(c) Money received against share warrants

0.000

40.420

82.620

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

3255.140

3008.250

2664.800

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

939.360

473.940

479.560

(b) Deferred tax liabilities (Net)

345.840

274.640

196.580

(c) Other long term liabilities

0.500

0.500

0.000

(d) long-term provisions

9.630

6.320

4.220

Total Non-current Liabilities (3)

1295.330

755.400

680.360

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2615.140

2506.750

1445.360

(b) Trade payables

615.500

616.270

434.240

(c) Other current liabilities

292.780

262.350

200.240

(d) Short-term provisions

189.910

183.130

134.100

Total Current Liabilities (4)

3713.330

3568.500

2213.940

 

 

 

 

TOTAL

8263.800

7332.150

5559.100

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2300.130

1854.630

1241.170

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

145.410

16.950

339.180

(iv) Intangible assets under development

33.830

9.870

0.000

(b) Non-current Investments

865.960

779.650

768.100

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

697.670

785.130

709.380

(e) Other Non-current assets

115.710

55.840

22.390

Total Non-Current Assets

4158.710

3502.070

3080.220

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1807.130

1775.460

929.940

(c) Trade receivables

1822.440

1654.350

1228.920

(d) Cash and cash equivalents

40.500

98.620

31.460

(e) Short-term loans and advances

336.180

251.730

228.250

(f) Other current assets

98.840

49.920

60.310

Total Current Assets

4105.090

3830.080

2478.880

 

 

 

 

TOTAL

8263.800

7332.150

5559.100

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

20573.210

16091.180

10775.330

 

 

Other Income

21.600

10.310

5.670

 

 

TOTAL                                     (A)

20594.810

16101.490

10781.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

13684.160

10273.840

7454.980

 

 

Purchases of Stock-in-Trade

5111.490

4469.700

1940.110

 

 

exceptional items

1.350

3.660

4.100

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(388.600)

(481.240)

50.970

 

 

Employees benefits expense

211.510

164.050

82.350

 

 

Other expenses

1021.170

727.000

530.530

 

 

TOTAL (B)

19641.080

15157.010

10063.040

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

953.730

944.480

717.960

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

462.160

320.060

232.330

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

491.570

624.420

485.630

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

98.690

78.790

55.470

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

392.880

545.630

430.160

 

 

 

 

 

Less

TAX                                                                  (H)

131.030

199.080

142.640

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

261.850

346.550

287.520

 

 

 

 

 

 

Earnings Per Share (Rs.)

11.38

15.12

12.27

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

Net Profit Margin (PAT/Sales)

(%)

1.27

2.15

2.67

 

 

 

 

 

Operating Profit Margin (PBITD/Sales)

(%)

4.64

5.87

6.66

 

 

 

 

 

Return on Total Assets (PBT/Total Assets}

(%)

5.44

8.36

9.66

 

 

 

 

 

Return on Investment (ROI) (PBT/Networth)

 

0.12

0.18

0.16

 

 

 

 

 

Debt Equity Ratio (Total Debt /Networth)

 

1.09

0.99

0.72

 

 

 

 

 

Current Ratio (Current Asset/Current Liability)

 

1.11

1.07

1.12

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

212.970

223.240

234.390

Reserves & Surplus

2369.210

2744.590

3020.750

Net worth

2582.180

2967.830

3255.140

 

 

 

 

long-term borrowings

479.560

473.940

939.360

Short term borrowings

1445.360

2506.750

2615.140

Total borrowings

1924.920

2980.690

3554.500

Debt/Equity ratio

0.745

1.004

1.092

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

10775.330

16091.180

20573.210

 

 

49.334

27.854

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

10775.330

16091.180

20573.210

Profit

287.520

346.550

261.850

 

2.67%

2.15%

1.27%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

No

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

10531151

17/11/2014

400,000,000.00

INDUSIND BANK LIMITED.

Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi, Delhi - 110001, INDIA

C33527755

2

10488512

27/03/2014

500,000,000.00

Axis Bank Limited

AXIS BANK LIMITED, 148, BARAKHAMBA ROAD, NEW DELH 
I, Delhi - 110001, INDIA

C02572030

3

10392963

20/11/2012

500,000,000.00

ING VYSYA BANK LIMITED

NARIAN MANZIL,GROUND FLOOR,SHOP NO. G1 TO G5,, I 
FLOOR,SHOP NO.1001 TO 1007,BARAKHAMBA ROAD,, NEW D 
ELHI, Delhi - 110001, INDIA

B64511850

4

10388122

13/05/2014 *

600,000,000.00

DBS BANK LIMITED.

CAPITAL POINT, BABA KHARAK SINGH MARG,, CONNAUGHT 
PLACE,, NEW DELHI, Delhi - 110001, INDIA

C03719416

5

10388208

20/05/2013 *

680,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, JAWAHAR VAPAR BHAWAN, 
1, TOLSTOY MARG, STC BUILDING, 14TH FLOOR, NEW DEL 
HI, Delhi - 110001, INDIA

B79588380

6

10377394

27/08/2012

36,500,000.00

KOTAK MAHINDRA BANK LIMITED

36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, M 
UMBAI, Maharashtra - 400021, INDIA

B58443797

7

10376100

10/10/2013 *

600,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W 
, MUMBAI, Maharashtra - 400013, INDIA

B88680384

8

10363530

23/01/2013 *

250,000,000.00

AXIS BANK LIMITED.

2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, 
NEW DELHI, Delhi - 110001, INDIA

B67416404

9

10338586

19/03/2014 *

500,000,000.00

Axis Bank Limited

AXIS BANK LIMITED, 148, BARAKHAMBA ROAD, NEW DELH 
I, Delhi - 110001, INDIA

C02573806

10

10290703

24/03/2014 *

500,000,000.00

YES BANK LIMITED

YES BANK LIMITED, DR ANNIE BESANT ROAD WORLI, MUM 
BAI, Maharashtra - 400018, INDIA

C02994408

 

* Date of charge modification

 

OVERVIEW

 

The year gone by FY14 was a good year for the company despite the adverse economic conditions prevailing the world over. It achieved a volume growth of above 25% even though the country was passing through a sluggish economy, lower investments and credit squeeze. This was also a challenging year since demand growth particularly in infrastructure and construction sector was sluggish. But this gave the company a excellent opportunity to revisit our systems and sharpen our practices. The company focussed on improving efficiencies, increasing penetration particularly in tier II cities, developing new product sizes, finding new markets etc. Due to number of measures taken, the company was able to beat slowdown and post robust growth. However in the process the EBITDA came under pressure and declined marginally.

 

There is a new optimism in the country after the recent change in the Government. Economic activity is expected to pick up momentum. Consequently investments in infrastructure, industries, construction, Irrigation etc. are all expected to leapfrog. This augurs well for your company. Our growth drivers are these industries and any improvement in their fortune will have a direct impact on your company as well. We expect demand to pick up in near future. So we are further strengthening our marketing network. Capacities are being increased to take care of additional demand. We expect to reach a capacity of about 1 million tonnes by next year. New export markets are being developed. Investments are being made in new products. Brand building exercises are getting the necessary thrust to make your company’s Brand APL Apollo popular throughout the targeted markets. With this the company expects to maintain the growth momentum and improve margins.

 

PROJECTS AND EXPANSION

The Company has undertook massive drive for expansion, capacity enhancement and de-bottlenecking of its manufacturing capacities in last couple of years and is confident of achieving ‘Vision 2015’ i.e. production of 1 million MT per annum well within the scheduled time. New manufacturing lines are added across the locations, new equipments based on latest technology is being commissioned, old machineries/plants are replaced with more efficient and state of the art facilities and plant layouts are reworked to achieve optimum utilizations of the installed capacities.

OPERATIONS

During FY14, the Company has achieved the highest ever volume, turnover despite the deceleration in the global and domestic economy. Though as a conscious strategy we lowered our margins to grab larger market share and become market leader. We extended our geographical reach to the end–users, strengthen our presence in tier II and tier III cities either via own warehouse cum branches or through dealer-distributors network. Additional warehouse-cum-branches were opened at Ananthapur, Dehradun and Jodhpur to cater to the burgeoning demand in various industrial applications, thereby, strengthening the APL Apollo brand. Measures to enhance cost efficiency across the verticals, innovative approach in production and distribution of the products helped the Company to control the manufacturing as well as selling and distribution cost.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

Management’s Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India, is presented in a separate section forming part of the Annual Report.

OUTLOOK

They aim to hit the 1 million tonnes sales in the next 2 years. We have assembled the largest range of products as well as have the largest and most diversified footprint in the Industry. We have taken over 2 units and successfully turned them around. Our M&A team is actively looking for new acquisitions and we should be able to complete one this year. We have invested heavily in our brand and aim to create a customer demand pull over time. Our aspiration is to make APL Apollo the brand of choice among our customers.

 

Another goal that we set for ourselves in 2012 was to achieve a USD 1 billion in revenues within 5 years. We should be able to achieve that.

 

 

PART-I STATEMENT OF STANDALONE UNAUDITED (PROVISIONAL) FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2014

 

(Rs. in millions)

Sr. No.

 

Particulars

Quarter Ended

Half Year Ended

30.09.2014

30.06.2014

30.09.2014

(Unaudited)

(Unaudited)

(Unaudited)

1

Income from Operations

 

 

 

 

a) Net Sales / Income from operations

 

 

 

 

Gross Sales

5516.981

5969.871

11486.852

 

Less: Excise Duty

527.651

521.752

1049.403

 

Total Income from Operations (net)

4989.330

5448.119

1049.403

2

Expenses

 

 

 

 

a) Consumption of Raw Materials

3866.270

4073.662

7939.932

 

b) Purchase of stock in trade

654.534

911.007

             1565.541

 

c) Changes in inventories of finished goods and WIP

(55.545)

(45.810)

(101.355)

 

d) Employee benefits expenses

45.523

43.873

89.396

 

e) Depreciation and amortisation expenses

32.356

31.327

63.683

 

f) Other Expenditure (Item not exceeding 10% of the total expenses relating to continuing operations)

227.761

256.718

484.479

 

Total Expenses

4770.900

5270.777

10041.677

3

Profit / (Loss) from operations before other income, finance costs and exceptional items (1-2)

218.431

177.342

395.772

4

Other Income

-

10.874

10.874

5

Profit from ordinary activities before finance cost and exceptional items

218.431

188.216

406.646

6

Finance Costs

117.399

106.112

121.793

7

Profit from ordinary activities after finance costs but before exceptional items

101.032

82.104

183.135

8

Exceptional Item

--

--

--

9

Profit from ordinary activities before Tax

101.032

82.104

183.135

10

Tax Expense

 

 

 

 

-Current Tax

16.239

12.644

28.883

 

-Deferred  ax

18.223

14.762

32.985

11

Net Profit from ordinary activities after tax

66.570

54.698

121.267

12

Extraordinary Item (net of tax expenses)

--

--

--

13

Net Profit for the period

66.570

54.698

121.267

14

Share of profit/( loss) of associates

--

--

--

15

Net Profit/( loss) after taxes, minority interest and s hare of profit/ (loss) of associated (13+14+15)

66.570

54.698

121.267

16

Paid-up Equity Shares Capital (Face value of Rs.10/- each)

234.386

234.386

234.386

17

Reserves excluding Revaluation Reserve as per Balance Sheet of Previous Year

--

--

--

18i

Earning Per Shares (EPS before extraordinary items)

 

 

 

 

- Basic (in Rupees, not annualized)

2.84

2.33

5.17

 

- Diluted (in Rupees, not annualized)

2.84

2.33

5.17

18ii

Earning Per Shares (EPS AFTER extraordinary items)

 

 

 

 

- Basic (in Rupees, not annualized)

2.84

2.33

5.17

 

- Diluted (in Rupees, not annualized)

2.84

2.33

5.17

PART II

 

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public shareholding

 

 

 

 

- No of shares

13185099

13185099

13185099

 

- Percentage of shareholding

56.254

56.254

56.254

2

Promoters and promoter group shareholding

 

 

 

 

a) Pledged / Encumbered

 

 

 

 

- No of shares

0

0

0

 

- Percentage of shares (as a % of the total shareholding of promoters and promoter group

0.000

0.000

0.000

 

- Percentage of shares (as a % of the total share capital of the company)

0.000

0.000

0.000

 

b) Non-encumbered

 

 

 

 

- No of shares

10253537

10253537

10253537

 

- Percentage of shares (as a % of the total shareholding of promoters and promoter group

100.000

100.000

100.000

 

- Percentage of shares (as a % of the total share capital of the company)

43.746

43.746

43.746

 

B

INVESTOR COMPLAINTS

3 months ended as on 30.09.2014

 

Pending at the beginning of the quarter

Nil

 

Received during the quarter

Nil

 

Disposed of during the quarter

Nil

 

Remaining unresolved at the end of the quarter

Nil

 

FIXED ASSETS:

 

Tangible Assets

·         Land

·         Building

·         Plant and Machinery

·         Office Equipment

·         Vehicle

·         Furniture and Fixture

·         Computer

·         Zinc

Intangible Assets under Development

·         WIP (Software Development)

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 records 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.61.67

UK Pound

1

Rs.96.93

Euro

1

Rs.77.35

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KRN

 

 

Report Prepared by :

ANU

 

 

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

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

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

 

52

 

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

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.