1. Summary Information
|
|
|
Country |
|
|
Company Name |
SUJANA METAL
PRODUCTS LIMITED |
Principal Name 1 |
Mr. Y.S. Chowdary |
|
Status |
Moderate |
Principal Name 2 |
Mr. R.K. Birla |
|
|
|
Registration # |
36-008610 |
|
Street Address |
8-2-248/1/7/41,
Nagarjuna Hills, Panjagutta, |
||
|
Established Date |
02.05.1988 |
SIC Code |
-- |
|
Telephone# |
91-40-23351882 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-40-23350766 |
Business Style 2 |
Trading |
|
Homepage |
Product Name 1 |
Steel |
|
|
# of employees |
Not Available |
Product Name 2 |
-- |
|
Paid up capital |
Rs.1131,091,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and Promoter
Group 35.78% Public shareholding 64.22% |
Banking |
Andhra Bank Bank of Bank of |
|
Public Limited Corp. |
YES |
Business Period |
26 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
B
(29) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
Company |
India |
Glade Steel Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2014 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
19,925,387,000 |
Current Liabilities |
5,506,090,000 |
|
Inventories |
2,800,397,000 |
Long-term Liabilities |
16,147,576,000 |
|
Fixed Assets |
5,149,022,000 |
Other Liabilities |
927,304,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
22,580,970,000 |
|
Invest& other Assets |
1,642,164,000 |
Retained Earnings |
5,804,909,000 |
|
|
29,516,970,000 |
Net Worth |
6,936,000,000 |
|
Total Assets |
|
Total Liab. & Equity |
29,516,970,000 |
|
Total Assets (Previous Year) |
24,615,437,000 |
|
|
|
P/L Statement as of |
31.03.2014 |
(Unit: Indian Rs.) |
|
|
Sales |
28,444,187,000 |
Net Profit |
(381,556,000) |
|
Sales(Previous yr) |
36,498,548,000 |
Net Profit(Prev.yr) |
(202,611,000) |
MIRA
INFORM REPORT
|
Report Date : |
07.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUJANA METAL PRODUCTS LIMITED (w.e.f. 09.11.2001) |
|
|
|
|
Formerly Known
As : |
SUJANA STEEL LIMITED (w.e.f. 20.04.1992) SUJANA
STEELS PRIVATE LIMITED (w.e.f. 30.03.1992) SUJANA
STEEL RE-ROLLING INDUSTRIES PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
8-2-248/1/7/41, Nagarjuna Hills, Panjagutta, Hyderabad – 500 082,
Telangana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation
: |
02.05.1988 |
|
|
|
|
Com. Reg. No.: |
36-008610 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1131.091
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L28120TG1988PLC008610 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
HYDS00083G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCS8614H |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is Primarily engaged in the Manufacturing and Trading of Steel
and Steel Products Business. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 27744000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a part of “Sujana group”. It is an established company
having moderate track. The company possesses a moderate financial profile marked by
consecutive losses and high collection period during FY 2014. The rating also take into consideration the possible improvement in
its overall profile post implementation of corporate debt restructuring
package by lenders. However, trade relations are improving. Business is active. Payment
terms are reported as slow. In view of experienced promoters and long track of operations, the
company can be considered for business dealings with great 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 – 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 |
CARE |
|
Rating |
Long Term Bank Facilities: B+ |
|
Rating Explanation |
Risk prone credit quality and high risk of
default. |
|
Date |
February 19, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
February 19, 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
31-03-2014.
LOCATIONS
|
Registered / Corporate Office : |
8-2-248/1/7/41, Nagarjuna Hills, Panjagutta, Hyderabad – 500 082,
Telangana, India |
|
Tel. No.: |
91-40-23351882/ 5/ 7/ 23351887 |
|
Fax No.: |
91-40-2335 0766 / 23351882 / 23351887/ 23358499 |
|
E-Mail : |
|
|
Websites : |
|
|
|
|
|
Works : |
|
|
Hyderabad : |
(i) Survey No.296/7/9,
IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana,
India (ii) Plot No. 4, Survey
No.296/7/7, 8 and 11, IDA Bollaram, Jinnaram Mandal, Medak District – 502
325, Telangana, India (iii) Survey No. 296/7/7,
296/7/8, 296/7/11, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana,
India (iv) Survey No. 296/7/7,
8 and 11, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana,
India (v) Survey No.196 and
197, Parigi Road, Elikatta Village, Shadnagar, Mahaboobnagar District, Telangana,
India (vi) Cut and Bend
Division: Survey No.204, 205 and 206 Elakatta Gram Panchayat, Farooq Nagar
Mandal, Mahaboob Nagar District – 509 216, , Telangana, India (vii) Trading Division:
Plot No.4, Survey No.296/7/7A, IDA Bollaram, Jinnaram Mandal, Medak District
– 502 325, , Telangana, India |
|
|
|
|
Chennai
: |
(i) Survey No.204/8B,
Manjankaranai Village, Chennai, M.G.R. District – 620 502, Tamilnadu, India (ii) Plot No. B-20E, SIPCOT
Industrial Complex, Gummidi Pondi, Chennai, Tamilnadu, India |
|
|
|
|
Visakhapatnam
: |
Sanivada
Village, Rajeevnagar, Visakhapatnam – 530 046, Andhra Pradesh, India |
|
|
|
|
Secretarial
Department: |
Plot No.41, Nagarjuna Hills, Panjagutta, Hyderabad - 500082, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Y.S. Chowdary |
|
Designation : |
Chairman |
|
Address: |
Plot No.29, Sagar Co-Operative Housing Society, Banjara Hills, Hyderabad
– 500 033, Telangana, India |
|
Date of Birth/ Age: |
02.06.1961 |
|
Qualification : |
Master Degree in
Engineering with specialization in Machine Tools from P.S.G. College of
Technology, Coimbatore |
|
Expertise in specific
functional area : |
He has distinguished
himself as a technocrat entrepreneur and had played a bigger role in
establishing the Sujana Group of companies. He has been a constant driving
force for fostering higher growth amongst all the group companies. Shri. Y.S.
Chowdary has in depth knowledge and a deep insight into the domestic and
global steel products industry. |
|
Date of Appointment : |
13.02.1992 |
|
Directorship in other
Indian Public Limited Companies as on 31.03.2013 : |
·
Sujana Towers Limited ·
Sujana Universal Industries Limited ·
Sujana Projects Limited ·
Sujana Holdings Limited ·
Sujana Energy Limited ·
Sujana Power (Gangikondan) Limited ·
Sujana Power (Tuticorin) Limited ·
Sujana Power (India) Limited |
|
|
|
|
Name : |
Mr. R.K. Birla |
|
Designation : |
Managing Director |
|
Address: |
120, Gunrock Enclave, Secunderabad – 500 020, Telangana, India |
|
Date of Birth/ Age: |
20.01.1952 |
|
Qualification : |
Bachelor Degree Course in
arts and Master of Business Administration (MBA) from BITS Pilani |
|
Experience : |
40 Years |
|
Date of Appointment: |
05.05.1992 |
|
|
|
|
Name : |
Mr. G. Srinivasa Raju |
|
Designation : |
Director |
|
Address: |
Flat No.405, White House, 8-2-6-74/2/2A, Road No.13, Banjara Hills, Hyderabad
– 500 033, Andhra Pradesh, India |
|
Date of Birth/ Age: |
20.10.1963 |
|
Date of Appointment: |
18.08.1999 |
|
|
|
|
Name : |
Mr. S. Hanumantha Rao |
|
Designation : |
Director |
|
Address: |
8-3-720/85, Salivahana Nagar, Srinagar Colony, Hyderabad – 500 073,
Telangana, India |
|
Date of Birth/ Age: |
18.07.1951 |
|
Qualification : |
PHD M Science B Civil Engineering |
|
Date of Appointment: |
19.07.1999 |
|
|
|
|
Name : |
Mr. J. Ramakrishnan |
|
Designation : |
Independent
and Non-Executive Director |
|
Address: |
Jasmin Cottage, H No.8-2-6088 Road No.10, Banjara Hills, Hyderabad –
500 034, Telangana, India |
|
Date of Birth/ age: |
20.08.1936 |
|
Date of Appointment: |
24.07.1995 |
|
|
|
|
Name : |
Dr. K. Srinivasa Rao |
|
Designation : |
Independent
and Non-Executive Director |
|
Address: |
17/1-38 8/47 (II), Srivakshmi Nagar Colony, Hyderabad – 500 659,
Telangana, India |
|
Date of Birth/ Age : |
01.08.1934 |
|
Qualification : |
Master of Arts
(Mathmatics) from Sri Venkateswara University |
|
Expertise in specific
functional area : |
Started his career in
July, 1957 as a Probationary Officer in State Bank of India, he was the Superintendent,
Foreign Exchange Department, Bangalore Branch. He worked in various
capacities such as Accountant, Officer-in-charge, Branch Manager, Deputy
Chief Accountant, Chief Manager, General Manager, Finance Director etc., of
State Bank of India at various branches across India. |
|
Date of Appointment : |
28.01.2000 |
|
Directorship in other
Indian Public Limited Companies as on 31.03.2013 : |
Sujana Universal
Industries Limited |
|
|
|
|
Name : |
Dr. V. Malakonda Reddy |
|
Designation : |
Independent
and Non-Executive Director |
|
Address: |
Plot No.268, 27, Minhvla Nagar, Banjara Hills, Hyderabad – 500 034,
Telangana, India |
|
Date of Birth/ Age: |
23.08.1932 |
|
Qualification : |
PHD M Science B Civil Engineering |
|
Date of Appointment: |
05.05.1992 |
|
|
|
|
Name : |
Mr. Ch. Srinivasu, , IDBI Nominee |
|
Designation : |
Independent
and Non-Executive Director |
|
|
|
|
Name : |
Mr. Vimlesh Kumar, PNB Nominee |
|
Designation : |
Independent
and Non-Executive Director |
|
|
|
|
Management
Committee : |
Mr. G.Srinivasa Raju Mr. R.K.Birla Mr. S.Hanumantha Rao |
|
|
|
|
Audit
Committee : |
Dr. K.Srinivasa Rao Mr. S.Hanumantha Rao Dr.V.Malakonda Reddy |
|
|
|
|
Share
Transfer Committee : |
Mr.
Y.S. Chowdary Mr.
G. Srinivasa Raju Mr.
R.K. Birla |
|
|
|
|
Shareholders’
Grievances Committee : |
Mr.
S. Hanumantha Rao Mr.
Y.S. Chowdary Mr.
G. Srinivasa Raju |
|
|
|
|
Remuneration
Committee : |
Dr.
K. Srinivasa Rao Mr.
J. Ramakrishnan Dr.
V. Malakonda Reddy |
KEY EXECUTIVES
|
Name : |
Mr.
Shaik Ibraheem |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Ch.
Narayana Rao |
|
Designation : |
Vice President (Finance and Accounts) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of Shares |
% of Total No. of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
3200028 |
1.63 |
|
|
62766585 |
31.97 |
|
|
4278142 |
2.18 |
|
|
7 |
0.00 |
|
|
4278135 |
2.18 |
|
|
70244755 |
35.78 |
|
|
|
|
|
Total shareholding of Promoter and
Promoter Group (A) |
70244755 |
35.78 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
19096577 |
9.73 |
|
|
19096577 |
9.73 |
|
|
|
|
|
|
20829857 |
10.61 |
|
|
|
|
|
|
32310488 |
16.46 |
|
|
51936225 |
26.45 |
|
|
1932979 |
0.98 |
|
|
522991 |
0.27 |
|
|
1409988 |
0.72 |
|
|
107009549 |
54.50 |
|
Total Public shareholding (B) |
126106126 |
64.22 |
|
Total (A)+(B) |
196350881 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
196350881 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is primarily engaged in the business of manufacturing and trading of Iron and
Steel products. |
||||||
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v Andhra Bank v Bank of Baroda v Bank of India v IDBI Bank Limited v Indian Overseas Bank v Indian Bank v Karnataka Bank Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
NOTES: LONG TERM BORROWINGS Term loan from banks
viz. Punjab National Bank, Bank of India, Indian Overseas Bank, IDBI Bank and
Andhra Bank are secured by first charge on all the immovable and movable
fixed assets of the company both present and future and second charge on the
current assets of the company. Further these loans are secured by personal
guarantees and properties of certain directors. During the year the company
availed additional Term Loan taken from Andhra Bank Rs.27.100 millions, Bank
of of India Rs.26.900 millions, IOB Rs.154.00 lakhs and PNB Rs.406.00 lakhs
carries an interest rate of 11 % p.a for upgradation of technology at
Shadnagar and Suryapet units. As per CDR Terms of
repayment are as follows:
i.
Loan taken from Andhra Bank, Rs. 50.91Crores, carries an interest rate
of 11 % p.a from 1st October, 2012 till 30th September,2014 and
there after 13% p.a and is repayable in 96 monthly installments commencing
from 1st October, 2014 ii.
Loan taken from Indian Overseas Bank, Rs.32.60Crores, carries an
interest rate of 11 % p.a from 1st October, 2012 till 30th
September, 2014 and thereafter 13% p.a and is repayable in 96 monthly
installments commencing from 1st October, 2014. iii.
Loan taken from Bank Of India, Rs. 54.61Crores, carries an interest
rate of 11 % p.a from 1st October, 2012 till 30 th September, 2014 and there
after 13% p.a and is repayable in 96 monthly installments commencing from 1st
October, 2014. iv.
Loan taken from Punjab National Bank, Rs.90.86Crores, carries an
interest rate of 11 % p.a from 1st October, 2012 till 30th
September, 2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1st October, 2014.
v.
Loan taken from IDBI, Rs. 22.38Crores, carries an interest rate of 11
% p.a from 1st October, 2012 till 30th September, 2014 and
thereafter 13% p.a and is repayable in 96 monthly installments commencing
from 1st October, 2014. vi.
Term loan from financial institutions viz Stressed Assets
Stabilization Fund (SASF) secured by first charge on all the immovable and
movable fixed assets of the company and second charge on the current assets
of the company. As per SASF letter dated 15 March 2013, crystallizes the SASF
dues to Rs.660.000 millions and is to be paid in cash carrying ROI @ 9% p.a
payable over 9 1/2 years and balance Rs. 180.000 millions to be converted
into equity as per SEBI Guidelines. After giving effect to the CDR it was
decided that SASF dues as per June, 2008 package should be considered for
restructuring at par with other lenders including clearance of interest
overdue as on COD (October 1, 2012). As per Bank’s advice Interest and other
over dues of Rs182.000 millions as on COD, is to be cleared for restructuring
of dues at CDR. vii.
Overdue interest on Term Loans, SASF and Working Capital was converted
to ‘Funding of Interest on Term Loan’ amounting to Rs. 674.600 millions,
which shall be repayable in 4.5years after completion of moratorium period
i.e. October, 2014. viii.
Working Capital loans were converted to Working Capital Term Loans
amounting Rs.4173.566 millions, which shall be repayable in 8 years, after
completion of moratorium period i.e. Oct, 2014. ix.
Vehicle loans from banks and others are secured by hypothecation of
the vehicles financed through the loan arrangements and are repayable over a
period of 36 months to 60 months. SHORT TERM BORROWINGS
i.
Loans repayable on demand includes an amount of Rs. 6328.198 millions
(31.03.2013: Rs.5156.687 millions) represents working capital loans from
banks are inter alia secured by way of parri passu first charge on current
assets and parri passu second charge on fixed assets both present and future.
Further these loans are secured by personal guarantee and properties of
certain directors. ii.
Rs.408.502 millions has been brought by promoters as interest free
unsecured loan under CDR scheme which shall be converted in to equity shares
as per SEBI norms and Rs.10.000 millions from others in the previous year
carrying an interest of 17% per annum. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
CRK
and Associates Chartered Accountants |
|
Address : |
Hyderabad,
Telangana, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Nageswara Rao and
Company Cost Accountants |
|
Address : |
Secunderabad |
|
|
|
|
Subsidiaries : |
Subsidiaries held
directly v Glade Steel Private Limited, India v Alpha Ventures Limited, Cayman Islands v Asian Tide Enterprises Limited, Hong Kong Subsidiaries held
indirectly v Optimix Enterprises Limited, Mauritius |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
310000000 |
Equity Shares |
Rs.5/- each |
Rs.1550.000 millions |
|
4500000 |
Preference
Shares |
Rs.100/- each |
Rs.450.000 millions |
|
|
Total |
|
Rs.2000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
196350881 |
Equity Shares |
Rs.5/- each |
Rs.981.754
millions |
|
1493365 |
1%
Cumulative Redeemable Preference Shares |
Rs.100/-
each |
Rs.149.337
millions |
|
|
Total |
|
Rs.1131.091 Millions |
NOTES:
i)
Reconciliation
of the number of shares and amount outstanding at the beginning and at the end
of the reporting year/period
|
Particulars |
31st March, 2014 |
|
|
No. of Shares |
(Rs. in Millions) |
|
|
a) Equity (including shares
represented by underlying GDRs) |
|
|
|
Shares outstanding at the
beginning of the year/period |
196350881 |
981.754 |
|
Shares issued during the
year/period |
-- |
-- |
|
Shares bought back during
the year/ period |
-- |
-- |
|
Shares outstanding at the end of the year/ period |
196350881 |
981.754 |
|
|
|
|
|
b) Cumulative Redeemable
Preference Shares |
|
|
|
Shares outstanding at the
beginning of the year/period |
1493365 |
149.337 |
|
Shares Issued during the
year/period |
-- |
-- |
|
Shares redeemed during
the year/period |
-- |
-- |
|
Shares outstanding at the end of the year/period |
1493365 |
149.337 |
ii)
Details of shares held by each shareholder holding more than 5% shares:
|
Name of Shareholder |
31st March, 2014 |
|
|
No. of Shares held |
% held |
|
|
a)
Equity shares of Rs.5 each fully paid |
|
|
|
Yalamanchili
Finance & Trading Private Limited |
26766461 |
13.63 |
|
Foster
Infin and Trading Private Limited |
25000000 |
12.73 |
|
Deutsche
Bank Trust Company Americas |
-- |
-- |
|
Stressed
Assets Stabilisation Fund |
12759682 |
6.50 |
|
Sujana
Holdings Limited |
10000000 |
5.09 |
|
b) Cumulative Redeemable
Preference Shares of Rs.100 each fully paid |
|
|
|
IDBI
Bank Limited |
1493365 |
100.00 |
(iii) 13,140,489 Equity
shares issued as fully paid up to the shareholders of erstwhile Sujana Steels
Limited on its amalgamation with the company, for consideration other than
cash.
(iv) The company has only one
class of shares referred to as equity shares having a par value of Rs. 5/-.
Each holder of equity shares is entitled to one vote per share held.
In the event of
liquidation, the equity shareholders are eligible to receive the remaining
assets of the company after distribution of all preferential amounts, in
proportion to their shareholding. Nil (31.03.2013:12,946,000) equity shares
represent the shares underlying outstanding Global Depository Receipts (GDRs).
Each GDR represents 10 underlying equity shares.
(v) Redemption of
Cumulative Redeemable Preference Shares (CRPS)
1,493,365 1% of Cumulative
Redeemable Preference Shares of Rs.100 each aggregating to Rs.149.337 millions
is redeemable in 12 quarterly instalments co-terminus with principal payment commencing
from October 01, 2013 and ending July 01, 2016. CRPS carry cumulative
dividend@1% per annum. The company declares and pays dividend in Indian rupees
each. Each holder of CRPS is entitled to one vote per share only on resolutions
placed before the company which directly effect the rights attached to CRPS.
Three quarterly instalment
of Rs. 36.993 millions has been paid to IDBI (preference share holder) for
redemption of 3,73,340 numbers of 1% preference shares of Rs.100 each. However
these shares were not received by the company from IDBI for redemption. Hence
the amount of Rs.36.993 millions has been classified as advance.
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 |
1131.091 |
1131.091 |
1131.091 |
|
(b) Reserves & Surplus |
5804.909 |
6188.205 |
6392.544 |
|
(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) |
6936.000 |
7319.296 |
7523.635 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
9400.876 |
7851.757 |
2766.780 |
|
(b) Deferred tax liabilities (Net) |
683.101 |
614.913 |
616.914 |
|
(c) Other long term liabilities |
11.928 |
9.171 |
870.663 |
|
(d) long-term provisions |
29.154 |
24.297 |
20.711 |
|
Total Non-current Liabilities (3) |
10125.059 |
8500.138 |
4275.068 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
6746.700 |
5166.687 |
5572.614 |
|
(b) Trade payables |
4501.403 |
2672.273 |
4513.434 |
|
(c) Other current
liabilities |
1004.687 |
736.410 |
1943.953 |
|
(d) Short-term provisions |
203.121 |
220.633 |
256.683 |
|
Total Current Liabilities (4) |
12455.911 |
8796.003 |
12286.684 |
|
|
|
|
|
|
TOTAL |
29516.970 |
24615.437 |
24085.387 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5149.022 |
4699.183 |
4850.732 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
218.836 |
545.619 |
616.801 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1422.940 |
1422.940 |
1422.939 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3481.774 |
732.316 |
644.091 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
10272.572 |
7400.058 |
7534.563 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.388 |
0.382 |
0.421 |
|
(b) Inventories |
2800.397 |
1580.349 |
1624.255 |
|
(c) Trade receivables |
13897.619 |
13267.425 |
10786.151 |
|
(d) Cash and cash
equivalents |
196.183 |
221.815 |
642.620 |
|
(e) Short-term loans and
advances |
2294.713 |
2125.281 |
3471.710 |
|
(f) Other current assets |
55.098 |
20.127 |
25.667 |
|
Total Current Assets |
19244.398 |
17215.379 |
16550.824 |
|
|
|
|
|
|
TOTAL |
29516.970 |
24615.437 |
24085.387 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
28444.187 |
36498.548 |
35383.635 |
|
|
|
Other Income |
211.689 |
154.159 |
233.266 |
|
|
|
TOTAL |
28655.876 |
36652.707 |
35616.901 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
26847.262 |
33510.285 |
6667.910 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
25732.973 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(1103.561) |
(92.158) |
(456.751) |
|
|
|
Employees benefits expense |
231.266 |
239.994 |
234.204 |
|
|
|
Other expenses |
885.625 |
976.924 |
993.075 |
|
|
|
TOTAL |
26860.592 |
34635.045 |
33171.411 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
1795.284 |
2017.662 |
2445.490 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1725.564 |
1809.973 |
1722.830 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
69.720 |
207.689 |
722.660 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
382.866 |
412.301 |
469.462 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(313.146) |
(204.612) |
253.198 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
68.410 |
(2.001) |
44.898 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(381.556) |
(202.611) |
208.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1487.359 |
1715.415 |
1533.744 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend on CRPS |
1.493 |
1.493 |
1.492 |
|
|
|
Dividend distribution tax |
0.243 |
0.241 |
0.248 |
|
|
|
CRPS redemption reserve |
0.000 |
23.711 |
24.889 |
|
|
BALANCE CARRIED
TO THE B/S |
1104.067 |
1487.359 |
1715.415 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
2605.170 |
6858.603 |
2701.691 |
|
|
TOTAL EARNINGS |
2605.170 |
6858.603 |
2701.691 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials including stock in trade |
745.642 |
1053.483 |
2968.933 |
|
|
TOTAL IMPORTS |
745.642 |
1053.483 |
2968.933 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(1.95) |
(1.04) |
1.05 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(1.33) |
(0.55) |
0.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.10) |
(0.56) |
0.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.12) |
(0.90) |
1.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.05) |
(0.03) |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.33 |
1.78 |
1.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55 |
1.96 |
1.35 |
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 |
1131.091 |
1131.091 |
1131.091 |
|
Reserves & Surplus |
6392.544 |
6188.205 |
5804.909 |
|
Net worth |
7523.635 |
7319.296 |
6936.000 |
|
|
|
|
|
|
long-term borrowings |
2766.780 |
7851.757 |
9400.876 |
|
Short term borrowings |
5572.614 |
5166.687 |
6746.700 |
|
Total borrowings |
8339.394 |
13018.444 |
16147.576 |
|
Debt/Equity ratio |
1.108 |
1.779 |
2.328 |
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) |
|
Revenue from operations |
35383.635 |
36498.548 |
28444.187 |
|
|
|
3.151 |
(22.068) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Revenue from operations |
35383.635 |
36498.548 |
28444.187 |
|
Profit |
208.300 |
(202.611) |
(381.556) |
|
|
0.59% |
(0.56%) |
(1.34%) |
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 |
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 |
----- |
|
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:
|
CP 175 / 2013 CPSR
4864 / 2013 CASE IS:PENDING
|
||||||||||||
|
||||||||||||
|
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans repayable on demand |
|
|
|
From Banks |
418.502 |
10.000 |
|
|
|
|
|
Total |
418.502 |
10.000 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10437144 |
01/10/2013 * |
2,262,100,000.00 |
PUNJAB NATIONAL BANK |
Maker Towers E Ground Floor, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
B89591317 |
|
2 |
10437145 |
01/10/2013 * |
400,000,000.00 |
PUNJAB NATIONAL BANK |
Maker Towers E Ground Floor, Cuffe Parade,
Mumbai, Maharashtra - 400005, INDIA |
B89592125 |
|
3 |
10437192 |
01/10/2013 * |
4,918,700,000.00 |
PUNJAB NATIONAL BANK |
Maker Towers E Ground Floor, Cuffe Parade,
Mumbai, Maharashtra - 400005, INDIA |
B89591689 |
|
4 |
10399112 |
12/01/2013 |
400,000,000.00 |
LAKSHMI VILAS BANK LIMITED |
CHENNAI MAIN BRANCH, No.275,Thambu Chetty Street, CHENNAI,
Tamil Nadu - 600001, INDIA |
B66498056 |
|
5 |
10370071 |
19/06/2012 |
320,000,000.00 |
Indian Overseas Bank |
762, IOB Buildings, Annasalai, Chennai,
Tamil Nadu - 600002, INDIA |
B45520491 |
|
6 |
10297932 |
03/01/2012 * |
1,000,000,000.00 |
ORIENTAL BANK OF COMMERCE |
769, SPENCER PLAZA, ANNA SALAI, CHENNAI,
Tamil Nadu - 600002, INDIA |
B28990125 |
|
7 |
10238591 |
01/10/2013 * |
3,407,900,000.00 |
PUNJAB NATIONAL BANK |
Maker Towers E Ground Floor, Cuffe Parade,,
Mumbai, Maharashtra - 400005, INDIA |
B89589410 |
|
8 |
10199987 |
01/10/2013 * |
8,228,000,000.00 |
PUNJAB NATIONAL BANK |
Maker Towers E Ground Floor, Cuffe Parade,
Mumbai, Maharashtra - 400005, INDIA |
B89588651 |
|
9 |
10170459 |
08/04/2011 * |
340,000,000.00 |
Karnataka Bank Limited |
Rajbhavan Road, Somajiguda, Hyderabad,
Andhra Pradesh - 500082, INDIA |
B13712740 |
|
10 |
10103325 |
22/02/2008 |
120,000,000.00 |
SBI FACTORS AND COMMERCIAL SERVICES PRIVATE
LIMITED |
903-906, RAHEJA CHAMBERS, 9TH FLOOR,, FREE
PRESS JOURNAL MARG, NARIMAN POINT, MUMBAI, Maharashtra |
A38770301 |
|
11 |
10036374 |
19/02/2007 |
200,000,000.00 |
KARNATAKA BANK LTD. |
6-3-1090/A, Bhupal Towers, Raj bhavan road,
Hyderabad, Andhra Pradesh - 500016, INDIA |
A10444818 |
|
12 |
80032176 |
28/01/2005 |
50,000,000.00 |
Bank of Baroda |
Chennai Main Branch, 28 Rajaji Salai,
Chennai, Tamil Nadu - 600001, INDIA |
- |
|
13 |
90262491 |
03/07/2004 |
45,000,000.00 |
BANK OF BARODA |
CHENNAI MAIN BRANCH, 28 RAJAJI SALAI,
CHENNAI, Tamil Nadu, INDIA |
- |
|
14 |
90262043 |
24/03/2014 * |
200,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06052054 |
|
15 |
90292903 |
24/03/2014 * |
350,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06052245 |
|
16 |
80032054 |
24/03/2014 * |
100,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06049449 |
|
17 |
80032055 |
18/02/2000 * |
220,000,000.00 |
Industrial development Bank of India |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
- |
|
18 |
80032056 |
24/03/2014 * |
107,457,960.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06049845 |
|
19 |
90261671 |
24/03/2014 * |
190,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06051023 |
|
20 |
90261619 |
16/03/1998 |
25,000,000.00 |
BANK OF BROD |
RAJJI SALAI, CHENNAI, Tamil Nadu, INDIA |
- |
|
21 |
90261552 |
25/03/1998 * |
130,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
- |
|
22 |
90261498 |
07/05/1997 |
325,125,000.00 |
STATE BANK OF HYDERABAD |
IFB BRANCH, HYDERABAD, Andhra Pradesh,
INDIA |
- |
|
23 |
90261483 |
28/03/1997 |
50,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
- |
|
24 |
90292460 |
24/03/2014 * |
180,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06050389 |
|
25 |
90261474 |
24/03/2014 * |
50,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai, Maharashtra
- 400005, INDIA |
C06049167 |
|
26 |
90261409 |
19/08/1996 |
20,000,000.00 |
ANDHRA PREDESH INDUSTRIAL DEVELOPMENT
CORPORATION LTD. |
PARISHRMA BHAWAN, FATEH MAIDAN ROA,
HYDERABAD, Andhra Pradesh, INDIA |
- |
|
27 |
90261405 |
31/07/1996 |
60,000,000.00 |
BANK OF MADURA LIMITED |
K.J. MARKET, HYDERABAD, Andhra Pradesh,
INDIA |
- |
|
28 |
90261378 |
24/03/2014 * |
30,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06048110 |
|
29 |
90261324 |
29/12/1995 |
7,500,000.00 |
MODAL FINANCIAL CORPORATION LIMITED |
MODAL HOUSE, PANJGUTTA, HYDERABAD, Andhra
Pradesh, INDIA |
- |
|
30 |
90261299 |
09/11/1989 * |
60,000,000.00 |
STTAE BANK OF INDIA |
BALANAGAR BRANCH, HYDERABD, Andhra Pradesh,
INDIA |
- |
|
21 |
90261552 |
25/03/1998 * |
130,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER, CUFFE PARADE, MUMBAI,
Maharashtra, INDIA |
- |
|
22 |
90261498 |
07/05/1997 |
325,125,000.00 |
STATE BANK OF HYDERABAD |
IFB BRANCH, HYDERABAD, Andhra Pradesh,
INDIA |
- |
|
23 |
90261483 |
28/03/1997 |
50,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER, CUFFE PARADE, MUMBAI,
Maharashtra, INDIA |
- |
|
24 |
90292460 |
24/03/2014 * |
180,000,000.00 |
IDBI Bank Limited |
IDBI Tower,, Cuffe Parade, Mumbai,
Maharashtra - |
C06050389 |
|
25 |
90261474 |
24/03/2014 * |
50,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06049167 |
|
26 |
90261409 |
19/08/1996 |
20,000,000.00 |
ANDHRA PREDESH INDUSTRIAL DEVELOPMENT
CORPORATION |
PARISHRMA BHAWAN, FATEH MAIDAN ROA,
HYDERABAD, Andhra Pradesh, INDIA |
- |
|
27 |
90261405 |
31/07/1996 |
60,000,000.00 |
BANK OF MADURA LIMITED |
K.J. MARKET, HYDERABAD, Andhra Pradesh,
INDIA |
- |
|
28 |
90261378 |
24/03/2014 * |
30,000,000.00 |
IDBI Bank Limited |
IDBI Tower, Cuffe Parade, Mumbai,
Maharashtra - 400005, INDIA |
C06048110 |
|
29 |
90261324 |
29/12/1995 |
7,500,000.00 |
MODAL FINANCIAL CORPORATION LIMITED |
MODAL HOUSE, PANJGUTTA, HYDERABAD, Andhra
Pradesh, INDIA |
- |
|
30 |
90261299 |
09/11/1989 * |
60,000,000.00 |
STTAE BANK OF INDIA |
BALANAGAR BRANCH, HYDERABD, Andhra Pradesh,
INDIA |
- |
|
41 |
90260975 |
26/04/1993 * |
3,000,000.00 |
BANK OF BAROD |
MASAB TANK ROAD, HYDERABD, Andhra Pradesh,
INDIA |
- |
|
42 |
90260967 |
14/10/1992 |
2,900,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER, CUFFE PARDE, MUMBAI,
Maharashtra, INDIA |
- |
|
43 |
90260706 |
09/11/1989 * |
7,400,000.00 |
STTAE BANK OF INDIA |
BALANAGAR BRANCH, HYDERABD, Andhra Pradesh,
INDIA |
- |
* Date of charge modification
CORPORATE INFORMATION
Subject was incorporated in 02 May 1988 under the name of Sujana Steel Re-rolling Industries Private Limited. The name of the company was changed to Sujana Steels Private Limited on 30 March 1992. The company was converted into public limited company on 20 April 1992. The company further changed its name as Sujana Metal Products Limited w.e.f. 09 November 2001. The Company was promoted by Sri Y.S. Chowdary, his associates and relatives.
The company was incorporated with an object to manufacture of steel re-rolled products. Subject is engaging in the business of manufacturing and marketing value added steel products. Subject is categorized as a secondary steel producer in the Industry.
Subject is currently engaging in the business of Manufacture and trading of steel products like Thermo Mechanically Treated (TMT) bars in different sizes, Structural steels like Ms Angles, Ms Squares, Ms Beams and Ms Channels etc and smart steel of varying shapes and dimensions for the construction & infrastructure sector.
OPERATIONS AND OVERALL
PERFORMANCE:
During the year, the
Company reported total income of Rs.28655.878 millions as against Rs.36652.707
millions of previous year. The operating EBIDTA for the year was Rs.1795.284
millions as against Rs.2017.662 millions in the previous year. After making a
provision of Rs.1725.564 millions towards interest and Rs.382.866 millions
towards depreciation, the current financial year closed with a net loss of
Rs.381.556 millions as against net loss of Rs.202.611 millions last year.
The net worth of the
Company as on 31st March, 2014 (consisting of 12 months) is Rs
6936.000 millions against Rs. 7319.296 millions in 2012-13 (consisting of 12
months). Net worth is decreased by Rs. 383.296 millions due to losses.
Despite adverse Global as
well as Indian economy, the Company performed moderately and Sujana Metal looks
ahead to a hopeful further systematic robustness in the business and operation.
The Director continue to identify opportunities to leverage and introduce
technology to improve their performance, be it in operations, people
management, and knowledge management and to strengthen proactive stakeholder
relations.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT
INDUSTRY STRUCTURE AND
DEVELOPMENTS:
Indian Steel Industry has
grown from 76 Mt in 2012 to 81 Mt in 2013, a growth of 6.57%. The Indian Steel
Industry plays an important role in the country’s economic growth. The growth
of the Indian Steel Industry looks positive. However, it is impeded to some
extent higher lending rates resulting in to a higher cost of capital, thereby
impacting margins as well as capital expenditure plans.
A wide range of products
are manufactured by Engineering Industries in India. The developments of this
sector is dependent upon the development of core and infrastructure sectors.
The engineering segment is highly competitive in view of tough competition from
foreign companies / agencies and giant public / private sector undertakings.
STEEL INDUSTRY SCENARIO
In 2013 world steel demand
grew higher than estimates due to a stronger than expected performance in the
developed world in the second half of the year. In particular, the recovery in
the United States gained strength. In addition the downturn in the EU they now
expect that steel demand in the Eurozone will move into positive growth in
2014. On the other hand, many emerging economies continue to struggle with
structural issues and financial market volatility. This along with China’s
deceleration, is the reason for their slightly lower global growth rate
forecast for 2014. In short, the global steel demand recovery continues but
growth is stabilizing at a lower rate with continued volatility and uncertainty
leading to a challenging environment for steel companies.
After growth of 6.1% in
2013 with support from government infrastructure investment, apparent steel use
in China is expected slow to 3.0% growth in 2014 to 721.2 Mt as the Chinese
government’s efforts to rebalance the economy continues to restrain investment
activities. In 2015, steel demand growth is expected to further decelerate to
2.7%. In India, steel demand is expected to grow by 3.3% to 76.2 Mt in 2014,
following 1.8% growth in 2013, due to an improved outlook for the construction
and manufacturing sectors, although this will be constrained by high inflation
and structural problems. Steel demand is projected to grow by 4.5% in 2015
supported by the expectation that structural reforms will be implemented.
OUTLOOK
The outlook in the domestic
steel industry looks positive. The country has acquired an important position
on global steel map. The Indian steel industry has giant steel mills upgradation
and modernization of old steel mills has resulted in improved efficiency. It
has to adopt the latest technological developments in the steel making and keep
pace with the global steel industry.
The per capita steel
consumption in the country grew from 60 Kg in 2012-13 to about 63 Kg in 2013-14
a growth of 5.0% against the global average per capita consumption of 215 Kg.
In the coming years the consumption is expected to grow at higher rates as the
GDP growth picks up to the earlier levels of 8 to 10%.
However, challenges before
Indian steel industries are also there and need serious attention. Rising
prices of key raw material like iron ore and coking coal, fall in demand from
automobile have posed major threats. Despite this, the future of Indian steel
industry looks bright as per capita consumption is poised to grow substantially
from the current level of 63 Kg. Further, India has abundant mineral resources.
With acquisition of coking coal mines by Indian companies in countries like
South Africa and Australia, India is poised to grow.
A decisive mandate in the
General Elections has re-kindled hopes of an economic revival. Infrastructure
is the prime focus area of the newly formed Government and the Government is
undertaking proactive policy initiatives for Infrastructure development and
industrial growth, which will accelerate steel demand in line with economic
growth.
As always, the Company
looks forward to do well in the year ahead and is optimistic of its abilities
to address the set of opportunities and challenges that the coming year will
present.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
(a)
Contingent liabilities |
|
|
|
(i)
Claims against the Company not acknowledged as debts in respect of: |
|
|
|
Excise
Duty |
212.020 |
211.687 |
|
Custom
Duty |
83.949 |
79.767 |
|
TNVAT/APGST/CST |
219.812 |
217.939 |
|
Income
Tax (Net of liability as per return) |
147.925 |
151.725 |
|
FEMA* |
40.000 |
63.000 |
|
|
|
|
|
(ii)
Guarantees |
|
|
|
Corporate
Guarantees furnished on behalf of Sujana Universal Industries Limited |
8141.000 |
8141.000 |
|
Corporate
guarantee furnished on behalf of Optimix Enterprises Limited (USD 75 lakhs) |
408.750 |
408.750 |
|
|
|
|
|
(b)
Commitments |
|
|
|
Export
commitments on account of import of machinery and equipments at concessional
duty under EPCG scheme (31.03.2012: Rs.112.916Lakhs) .Such export commitments
need to be fulfilled by the Company on or before 23 April 2016. As on 31
March 2012, the Company has fulfilled its export commitments and which are
pending final approval of Director General of Foreign Trade. In the event of
non-fulfillment of the export commitments by 23 April 2016 by the Company,
the liability (excluding interest and penalties) towards customs duty |
11.216 |
11.216 |
|
*Against which bank guarantee of Rs.215 lakhs has been issued. |
||
FIXED ASSETS
œ Land- Freehold
œ Buildings
œ Plant and Machinery
œ Electrical Installation
œ Furniture and Fixtures
œ Office Equipment
œ Vehicles
œ Computers
œ Goodwill
œ Computer Software
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 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.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--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 |
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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
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.