MIRA
INFORM REPORT
|
Report Date : |
09.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
indian steel corporation limited |
|
|
|
|
Registered
Office : |
611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
16.02.2004 |
|
|
|
|
Com. Reg. No.: |
11-144559 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.721.480
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U27100MH2004PLC144559 |
|
|
|
|
TAN No.: [Tax Deduction and
Collection Account No.] |
MUMI04849F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCI2060A |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer and Trader of Steel Products i.e. CR Coils / Sheets, GP
Coils / Sheets and PPGL Coils etc. |
|
|
|
|
No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is jointly promoted by Ruchi Group of Industries, India and
Mitsui and company, Japan in the year 2004. The company has witnessed a pressure on its liquidity profile driven
by weakening in its profitability, huge amount of payables and increased
borrowings during FY 13. However, as per indirect source, we found that the management has
reported a growth in its manufacturing revenues during FY 14. The ratings also take into consideration the gradual improvement in
the financial profile due to the management opting for debt restructuring as
a measure to improve its liquidity position. Further the risks arising out of uncertainty in the economic
environment and highly competitive nature of the industry may have an effect
on the position of the company. However, trade relations are fair. Business is active. Payment terms
are reported as slow but correct. In view of technical and managerial support extended from Mitsui and
company limited, Japan, the subject can be considered for business dealings
with some caution. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
Term Loan “BB+” |
|
Rating Explanation |
Moderate risk of default regarding timely
servicing of financial obligations. |
|
Date |
July 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fund Based Limits “A4+” |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
July 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.
INFORMATION PARTED BY
|
Name : |
Mr. Manish Parikh |
|
Designation : |
Accounts Head |
|
Contact No.: |
91-22-22851303 |
|
Date : |
05.08.2014 |
LOCATIONS
|
Registered/ Branch Office 1 : |
611, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra,
India |
|
Tel. No.: |
91-22-22851303 |
|
Fax No.: |
91-22-22823177 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
503, Mahakosh House, 7/5, South Tukoganj,
Indore – 452001, Madhya Pradesh, India |
|
Tel. No.: |
91-731-4017909/ 4017509 |
|
Fax No.: |
91-731-4017919 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Survey No. 370, Near Bhimasal Railway Crossing, National
Railway, 8-A, Bhimasar, Gandhidham, Anjar, District Kutch – 370240, Gujarat, India
|
|
Tel. No.: |
91-2836-285371/ 72/ 73/ 74 |
|
Fax No.: |
91-2836-285375 |
|
|
|
|
Branch Offices 2 : |
207, Iscon Avenue, Opposite Choice Restaurant, C.G. Road, Navrangpura, Ahmedabad - 380009, Gujarat, India |
|
Tel. No.: |
91-79-30074314 |
|
Fax No.: |
91-79-30074314 |
|
|
|
|
Branch Offices 3 : |
No.595, Sri Lakshmi Adinarayan Swami Arcade, 1st Floor, JP Nagar 1st Phase, 5th Cross, Bangalore - 560078, Karnataka, India |
|
Tel. No.: |
91-80-33278235 |
|
Fax No.: |
91-80-33278231 |
|
|
|
|
Branch Offices 4 : |
43, 2nd Floor, Daryaganj, New Delhi – 110002, India |
|
Tel. No.: |
91-11-43651100/ 59 |
|
Fax No.: |
91-11-23241561 |
|
|
|
|
Branch Offices 5 : |
No.40 and 41, East Madha Church Road, Royapuram, Chennai - 600013, Tamilnadu, India |
|
Tel. No.: |
91-44-25952953 |
|
Fax No.: |
91-44-25976337 |
|
|
|
|
Branch Offices 6 : |
F.3, First Floor, Taksh Complex - 2,
Vasna Road, Vadodara – 390017, Gujarat, India |
|
Tel. No.: |
91-265-2250500 |
|
Fax No.: |
91-265-22250500 |
|
|
|
|
Branch Offices 7 : |
408, 4th Floor, Crystal Mall, Banipark, Jaipur - 302015, Gujarat, India |
|
Tel. No.: |
91-41-2209873/ 4002954/ 5109873 |
|
Fax No.: |
91-41-4027560 |
DIRECTORS
AS ON 18.09.2013
|
Name : |
Mr. Umesh Shahra |
|
Designation : |
Managing director |
|
Address : |
28, Old Palasia, A.B. Road, Indore - 452018, Madhya Pradesh, India |
|
Date of Birth/Age : |
17.06.1963 |
|
Qualification : |
B. Pharma (Hons.) PGDBM (IIMA) |
|
Date of Appointment : |
29.08.2011 |
|
PAN No.: |
AMBPS5571M |
|
DIN No.: |
00061312 |
|
|
|
|
Name : |
Mr. Arjun Zalani |
|
Designation : |
Whole-time director |
|
Address : |
27/B, Sector-A, Slice-6, Scheme No.78, Indore - 452010, Madhya
Pradesh, India |
|
Date of Birth/Age : |
26.11.1971 |
|
Qualification : |
B. E (Electronics), MBA |
|
Date of Appointment : |
27.09.2012 |
|
PAN No.: |
AABPZ0825D |
|
DIN No.: |
00848477 |
|
|
|
|
Name : |
Mr. Kailashchandra Shahra |
|
Designation : |
Director |
|
Address : |
29, Old Palasia, A.B. Road, Indore - 452018, Madhya Pradesh, India |
|
Date of Birth/Age : |
31.01.1938 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
01.02.2005 |
|
PAN No.: |
ABJPS9987Q |
|
DIN No.: |
00062698 |
|
|
|
|
Name : |
Mr. Shambunath Sadawarti |
|
Designation : |
Director |
|
Address : |
501, Gyan Sagar Apartment, Sanchar Nagar Extension, Indore - 452016,
Madhya Pradesh, India |
|
Date of Birth/Age : |
18.03.1947 |
|
Qualification : |
B. E. (Mech), PGDIM |
|
Date of Appointment : |
16.02.2004 |
|
DIN No.: |
00031966 |
|
|
|
|
Name : |
Mr. Navin Khandelwal |
|
Designation : |
Director |
|
Address : |
5/1, Saket Nagar, Indore - 452001, Madhya Pradesh, India |
|
Date of Birth/Age : |
22.04.1973 |
|
Qualification : |
CA |
|
Date of Appointment : |
01.07.2004 |
|
DIN No.: |
00134217 |
|
|
|
|
Name : |
Mr. Hiroyuki Furuhata |
|
Designation : |
Director |
|
Address : |
20-10, Hanegi 2, Chome Setagaya – KU, Tokyo NA |
|
Date of Birth/Age : |
16.12.1959 |
|
Date of Appointment : |
13.12.2012 |
|
DIN No.: |
06367333 |
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh Mishra |
|
Designation : |
Secretary |
|
Address : |
21A, Krishi Vihar Colony, Near Bakhtawar Ram Nagar, Indore - 452001,
Madhya Pradesh, India |
|
Date of Birth/Age : |
21.01.1964 |
|
Date of Appointment : |
28.03.2009 |
|
PAN No.: |
AFDPM4265M |
|
|
|
|
Name : |
Mr. Manish Parikh |
|
Designation : |
Accounts Head |
MAJOR SHAREHOLDERS
AS ON 18.09.2013
|
Names of Shareholders |
No. of Shares |
|
Umesh Shahra |
80800 |
|
Neeta Shahra |
1250 |
|
Arjun Zalani |
6100 |
|
Manish Parikh |
1000 |
|
Shambhu Nath Sadawani |
1000 |
|
Saket Barodia |
1000 |
|
Vijay Kumar Mahajan and Seema Mahajan |
5000 |
|
Vijay Kumar Mahajan and Varun Mahajan |
3125 |
|
Rohini Forex Private Limited, India |
3721028 |
|
Ruchi Acroni Industries Limited, India |
663000 |
|
Ruchi Global Limited, India |
1240000 |
|
Ruchi Infrastructure Limited, India |
2995100 |
|
Ruchi Corporation Limited, India |
1135800 |
|
Ruchi Stock and Securities Private Limited, India |
3314873 |
|
Ruchi Real Estate Developers Private Limited, India |
3459112 |
|
Ruchi Growth Fund Private Limited, India |
3436915 |
|
Rohini Commodities Private Limited, India |
11412118 |
|
Mandhana Leafin Limited, India |
2757587 |
|
Lucas Meyer Industries Private Limited, India |
2761500 |
|
Iron Global Limited, India |
54100 |
|
Swastika Worldwide Private Limited, India |
20000 |
|
Snehdeep Impex Private Limited, India |
825233 |
|
SSP Finvest Private Limited, India |
877903 |
|
Trans Siberian Industries Limited, UAE |
4709807 |
|
Sino Asian Resources Industries Limited, Hong Kong |
5866397 |
|
Kyanite Economic and Development Limited, Singapore |
4357648 |
|
Global Connects Instrument Limited, UAE |
4228046 |
|
Mitsui and Company Limited, Japan |
7190691 |
|
Mitsui and Company India Private Limited, India |
2151608 |
|
Mitsui and Company (Asia Pacific) Pte. Limited, Singapore |
5057646 |
|
|
|
|
Total |
72335387 |
Equity Share Break up (Percentage of Total Equity)
AS ON 18.09.2013
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
46.40 |
|
Bodies corporate |
53.47 |
|
Directors or relatives of Directors |
0.12 |
|
Other top fifty shareholders |
0.01 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Trader of Steel Products i.e. CR Coils / Sheets, GP
Coils / Sheets and PPGL Coils etc. |
||||||
|
|
|
||||||
|
Products/ Services : |
|
||||||
|
|
|
||||||
|
Exports : |
|
||||||
|
Products : |
·
Chemicals ·
Adhesives |
||||||
|
Countries : |
·
Far East ·
Middle East ·
USA ·
Africa ·
Captain America |
||||||
|
|
|
||||||
|
Imports : |
|
||||||
|
Products : |
HR Coils |
||||||
|
Countries : |
Japan |
||||||
|
|
|
||||||
|
Terms : |
|
||||||
|
Selling : |
L/C, Cash and Credit |
||||||
|
|
|
||||||
|
Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
|
Suppliers : |
JSW Steel Limited |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Customers : |
·
Force Motors ·
Godrej Limited |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
No. of Employees : |
500 (Approximately) |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
· Corporation Bank Limited, Mahavir Empire, 63, M.G. Road, Indore – 452001, Madhya Pradesh, India · IDBI Bank Limited, Corporate Branch, Upper Ground Floor, Captain C.S. Nayudu Arcade, 10/2, Old Palasia, Indore – 452001, Madhya Pradesh, India · Jammu and Kashmir Bank Limited, Block "D", 1st Floor, North Side, Shiv Nagar Estates, Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India · State Bank of Indore, Industrial Finance Branch, Khel Prashal, Indore - 452003, Madhya Pradesh, India · Punjab National Bank, Mid Corporate Branch, GG Tower, MG Road, Indore - 452007, Madhya Pradesh, India · IDBI Bank Limited, 1, Indian Red Cross Socity Building, Red Cross Road, New Delhi – 110001, India · State Bank of India · State Bank of Saurashtra · State Bank of Travancore · State Bank of Hyderabad · State Bank of Patiala · State Bank of Bikaner and Jaipur · HDFC Bank Limited · Oriental Bank of Commerce ·
Bank of India |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Ashok Khasgiwala and Company Chartered Accountants |
|
Address : |
317, Chetak Centre, “Annexe”, R.N.T. Marg, Indore – 452001, Madhya
Pradesh, India |
|
Tel. No.: |
91-731-2517341/ 4069301/ 2523134 |
|
E-Mail : |
|
|
Income-tax
PAN of auditor or auditor's firm : |
AACFA7732P |
|
|
|
|
Subsidiary company: |
Indian Steel SEZ Limited [U74900MH2007PLC173930] |
|
|
|
|
Enterprises which are owned, or have significant influence of or are
partners with Key management personnel and their relatives: |
· Ruchi Strips and Alloys Limited [L27100MH1987PLC142326] Ruchi Acroni Industries Limited [U74999MH1979PLC029075] |
CAPITAL STRUCTURE
AS ON 18.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.10/- each |
Rs.800.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
72335387 |
Equity Shares |
Rs.10/- each |
Rs.723.354 Millions |
|
|
|
|
|
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.10/- each |
Rs.800.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
72147994 |
Equity Shares |
Rs.10/- each |
Rs.721.480 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
721.480 |
712.017 |
610.000 |
|
(b) Reserves & Surplus |
3984.190 |
3853.969 |
2832.511 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
273.283 |
|
Total
Shareholders’ Funds (1) + (2) |
4705.670 |
4565.986 |
3715.794 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3559.388 |
3734.692 |
3710.276 |
|
(b) Deferred tax liabilities (Net) |
178.633 |
148.867 |
146.497 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
13.592 |
10.598 |
5.919 |
|
Total Non-current Liabilities (3) |
3751.613 |
3894.157 |
3862.692 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
5416.793 |
2639.248 |
1799.688 |
|
(b) Trade payables |
9492.341 |
7020.618 |
3530.882 |
|
(c) Other current
liabilities |
1602.901 |
1927.612 |
1749.351 |
|
(d) Short-term provisions |
2.096 |
0.953 |
124.850 |
|
Total Current Liabilities (4) |
16514.131 |
11588.431 |
7204.771 |
|
|
|
|
|
|
TOTAL |
24971.414 |
20048.574 |
14783.257 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
9949.118 |
7719.044 |
5023.094 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
116.699 |
1731.860 |
2379.077 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.274 |
0.503 |
0.503 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
563.704 |
766.017 |
1058.147 |
|
(e) Other Non-current assets |
108.460 |
78.898 |
0.000 |
|
Total Non-Current Assets |
10738.255 |
10296.322 |
8460.821 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
9.142 |
39.898 |
130.940 |
|
(b) Inventories |
6030.682 |
4411.167 |
3326.549 |
|
(c) Trade receivables |
4034.546 |
3271.274 |
1391.857 |
|
(d) Cash and cash
equivalents |
2017.597 |
996.388 |
423.600 |
|
(e) Short-term loans and
advances |
2101.485 |
1033.467 |
1027.650 |
|
(f) Other current assets |
39.707 |
0.058 |
21.840 |
|
Total Current Assets |
14233.159 |
9752.252 |
6322.436 |
|
|
|
|
|
|
TOTAL |
24971.414 |
20048.574 |
14783.257 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
|
23989.440 |
14066.078 |
|
|
|
Other Income |
|
92.151 |
78.071 |
|
|
|
TOTAL (A) |
30408.120 |
24081.591 |
14144.149 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
|
10685.367 |
6783.800 |
|
|
|
Purchases of stock-in-trade |
|
11276.821 |
5338.715 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
|
(1079.596) |
(105.751) |
|
|
|
Employee benefit expense |
|
225.857 |
175.036 |
|
|
|
Other expenses |
|
1487.102 |
1083.320 |
|
|
|
Exceptional items |
|
0.000 |
(57.506) |
|
|
|
TOTAL (B) |
30143.783 |
22595.551 |
13217.614 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
264.337 |
1486.040 |
926.535 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
197.317 |
1172.290 |
330.621 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
[Financial +
Depreciation] |
313.750 |
595.914 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
|
278.277 |
172.474 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
67.020 |
35.473 |
423.440 |
|
|
|
|
|
|
|
|
|
|
TAX (H) |
13.880 |
3.574 |
125.702 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
36.790 |
31.899 |
297.738 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
314.913 |
283.014 |
(14.724) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
351.703 |
314.913 |
283.014 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1899.753 |
1100.341 |
985.341 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
8639.501 |
6975.526 |
|
|
|
Stores and Spares |
NA |
43.326 |
14.007 |
|
|
|
Capital Goods |
NA |
404.345 |
460.167 |
|
|
TOTAL IMPORTS |
NA |
9087.172 |
7449.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.51 |
0.50 |
5.18 |
|
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
33000.000 |
The above information has been parted by Mr. Manish Parikh (Accounts
Head)
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.12 |
0.13 |
2.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA |
0.15 |
3.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.27 |
0.19 |
3.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.01 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.91 |
1.40 |
1.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86 |
0.84 |
0.88 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
610.000 |
712.017 |
721.480 |
|
Reserves & Surplus |
2832.511 |
3853.969 |
3984.190 |
|
Share Application money
pending allotment |
273.283 |
0.000 |
0.000 |
|
Net
worth |
3,715.794 |
4,565.986 |
4,705.670 |
|
|
|
|
|
|
long-term borrowings |
3710.276 |
3734.692 |
3559.388 |
|
Short term borrowings |
1799.688 |
2639.248 |
5416.793 |
|
Total
borrowings |
5509.964 |
6373.940 |
8976.181 |
|
Debt/Equity
ratio |
1.483 |
1.396 |
1.908 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs. In
Millions |
Rs.
In Millions |
|
Total Income |
14144.149 |
24030.520 |
30408.120 |
|
|
|
69.897 |
26.540 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs. In
Millions |
|
Total Income |
14144.149 |
24030.520 |
30408.120 |
|
Profit |
297.738 |
31.900 |
36.790 |
|
|
2.11% |
0.13% |
0.12% |
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 |
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 |
UNSECURED LOANS:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Short Term Borrowings |
|
|
|
Working capital
Loans from Banks |
4925.348 |
1378.640 |
|
|
|
|
|
Total |
4925.348 |
1378.640 |
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10419519 |
23/03/2013 |
350,000,000.00 |
STATE
BANK OF PATIALA |
MID CORPORATE
BRANCH, ORBIT MALL, A.B. ROAD, INDORE - 452001, MADHYA PRADESH, INDIA |
B73113110 |
|
2 |
10123996 |
21/09/2013
* |
6,630,000,000.00 |
STATE
BANK OF INDIA |
COMMERCIAL
BRANCH, A.B. ROAD, INDORE - 452001,
MADHYA PRADESH, INDIA |
B87125860 |
|
3 |
10147848 |
29/07/2008 |
400,000,000.00 |
PUNJAB
NATIONAL BANK |
MID
CORPORATE BRANCH, ORBIT MALL, A.B. ROAD, INDORE - 452001, MADHYA PRADESH,
INDIA |
A45770948 |
|
4 |
10114839 |
14/07/2008 |
400,000,000.00 |
PUNJAB
NATIONAL BANK |
MID CORPORATE
BRANCH, ORBIT MALL, A.B. ROAD, INDORE - 452001, MADHYA PRADESH, INDIA |
A42329813 |
|
5 |
80038787 |
19/12/2005 |
700,000,000.00 |
CORPORATION
BANK |
63
M.G. ROAD, REGAL SQUARE, INDORE - 452001, MADHYA PRADESH, INDIA |
- |
|
6 |
80039724 |
12/11/2005 |
500,000,000.00 |
CENTRAL
BANK OF INDIA |
CORPORATE
FINANCE BRANCH, SIYAGANJ, INDORE - 452001, MADHYA PRADESH, INDIA |
- |
|
7 |
80039723 |
14/10/2004 |
500,000,000.00 |
STATE
BANK OF INDIA |
COMMERCIAL
BRANCH, A.B. ROAD, INDORE - 452001, MADHYA
PRADESH, INDIA |
- |
|
8 |
90146762 |
14/10/2004 |
500,000,000.00 |
STATE
BANK OF INDIA |
COMMERCIAL
BRANCH, A.B. ROAD, INDORE - 452001,
MADHYA PRADESH, INDIA |
- |
|
9 |
90148883 |
22/06/2013
* |
18,298,600,000.00 |
IDBI
BANK LTD. |
SPECIALIZED
CORPORATE BRANCH, UG - 1 C.S. NAYUDU ARCADE, 10/2 OLD PALASIA, INDORE - 452001, MADHYA PRADESH, INDIA |
B79941332 |
|
10 |
90145418 |
22/10/2013
* |
24,928,600,000.00 |
IDBI
BANK LIMITED |
IDBI
TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
B90312638 |
* Date of charge modification
PERFORMANCE AND PROGRESS
During
the year, subject has achieved a turnover of Rs.30408.12 Million registering a growth
of 26.54% as compared to last financial year. However weakening of INR against
USD has caused an adverse impact on the profitability of subject, due to which
Profit before tax during the year stood at Rs.67.02 Million.
During
the year subject has successfully launched the wider width Colour Coated Line
with a special feature of three layer and four layer coating supplied by CMI -
FPE. The wider width Colour Coated material is the product of the future and is
in good demand, both in construction and home appliance segment in domestic and
international market. Thus with this addition in subject’s capability, we hope
to reap the benefits.
Subject
has also successfully commissioned the profiling line with a new and elegant
profile structure and started supplying to construction sector. The product is
well appreciated by the market. Subject in its endeavor to do innovative things
and provide good value products to market is adding a special pretreatment line
to enhance the coated product’s life many folds. Subject is likely to launch
another new series of product in the profiling sector to get better value of
the product.
MARKET DEVELOPMENT AND PROGRESS IN AUTO
AND WHITE GOODS SEGMENT
With
the primary focus to produce quality steel and coated steel products Indian
Steel Corporation today, is a name to reckon with, in a variety of segments
such as: Automotive, Home Appliances, Construction and General Engineering.
Being
a firm believer in commissioning of top-notch technology, ISC is now fully
equipped to supply Cold Rolled Steel Coils/sheets, Galvanized and Colour Coated
Steel Coils/sheets to auto and home appliance majors.
After
completion of phase-II expansion project your Company is now able to save
foreign exchange for the country and also minimizing dependence on imports for
Indian Automotive and Home appliance sectors.
Subject
is supplying its products to Auto Majors like Tata Motors, Bajaj Auto, Ashok
Leyland, AMW, Force Motors, General Motors, Eicher Motors Limited etc. and
White Goods majors like LG, Videocon, Samsung, Godrej Boyce etc.
Today
ISC’s pre-painted brand UltraCoat is widely accepted in the markets.
MARKET
DEVELOPMENT AND PROGRESS IN CONSTRUCTION SEGMENT
Ensuring
quality and easy availability of our products, we enjoy a receptive market for
our products and to achieve this, we have established an extremely robust
dealer network, comprising of 306 dealers, 1200 plus sub dealers and 32 stock
points covering the entire length and breadth of India.
We
manufacture a wide range of steel products and today our galvanized product
brands- Indian Ultra Tuf, Indian Tadka, Indian Makkhan, Indian Cool and colour
coated product brands Ultra Coat, Ultra Shine and Ultra Tuf Colour have in a
short span of time, become household names among the consumers.
Ultra
Shine pre-painted profile sheets are very popular with the construction segment
in India and overseas as well. It claims of proven wind resistance upto180
kmph, which is a rare feat achieved by very few producers worldwide.
To strengthen a steely bonding with the customers, various
brand promotional activities, events have been carried out during the year.
EXPANDING STEEL RETAIL
Established
a chain of 146 ISC Steel Zones across India, which not only increases the depth
of market for Indian Steel Corporation, but also offers its customers a
substantial advantage.
STRENGTHNING RELATIONSHIP WITH
STRATEGIC PARTNER
Subject
continues to enjoy full trust and confidence of Mitsui Group, Japan, the
strategic partner of subject rendered its valuable support in the growth of
subject.
PROSPECTS
·
Indian steel industry plays a
significant role in the Country’s economic growth. Currently, ranked the
world's fourth largest crude steel capacity, India is expected to become the
second largest producer of crude steel in the world by 2015-16. India is also
the world's largest producer of sponge iron with a host of coal-based units
located in its mineral-rich states.
·
Indian crude steel production is
estimated to grow at a compound annual growth rate (CAGR) of around 10 per cent
during 2010-2013, whereas the finished steel consumption is estimated to grow
at a CAGR of around 12 per cent during FY 2012-14. Steel consumption in India
is expected to grow significantly in coming years as per capita finished steel
consumption is far less than its regional counterparts.
·
The World Steel Association has
estimated steel consumption in India to grow at five per cent in 2013.
"Steel producers may see a spurt in demand in the medium term if the
Indian Government implements its US$ 1 trillion infrastructure investment plan.
·
India has acquired a central position
on the global steel map with its giant steel mills, acquisition of global scale
capacities by players, continuous modernization and up-gradation of old plants,
improving energy efficiency and backward integration into global raw material
sources.
·
India's steelmaking capacity is
estimated to exceed 100 million tonnes (MT) by 2013 and the production is expected
to reach 275 MT by 2020. Taking into account the government incentive plan to
boost the economic growth by infusing funds in various industries, such as
automobile, construction, infrastructure, power etc. the future of the Indian
Steel Industry seems to be good.
Subject
is poised to avail all such opportunities and to meet the growing demands of
domestic as well as international markets. With a good acceleration in demand
emanating from all segments of the industrial sector, it is expected that the
Company will achieve significant position for coated steel products. Given the
experience of strong senior management team having substantial exposure in
steel industry, value added to implement our strategies, the prospects for
sustainable long term growth in our business and consequently shareholders
value are tremendous.
However,
volatility in raw materials prices across the globe especially in commodity
market, recession in European economy and fluctuations in the foreign
currencies could affect the performance of the Company in terms of
profitability. Your management is taking appropriate steps to combat the
negative impact of these factors.
EXCELLENCE THROUGH LEARNING AND
INNOVATION
Subject
is committed to produce world class products that best satisfy its customers,
by building an organization which pursues excellence through continuous
learning and innovation thereby ensuring best value to all its stakeholders.
Subject
is implementing world class manufacturing programs and is committed to move
towards world class manufacturing practices thereby maintaining higher
productivity and adhering to standard quality, integrity and fairness.
FIXED ASSETS:
· Land
· Buildings
· Plant and equipment
· Furniture and fixtures
· Vehicles
· Motor vehicles
· Office equipment
PRESS RELEASE:
INDIAN STEEL CORP LAUNCHES 4-FT-WIDE COLOUR COATED PROFILE SHEET
Ahmedabad, September 16:
Indian Steel Corporation Ltd, a joint venture of Ruchi Group
and Japan-based Mitsui and Company, on Monday launched “Ultrashine XL”, India’s
first colour-coated profile sheet now available in four-feet width.
Available in different colours, these sheets are best
suited for residential, commercial, industrial roofings, airports, stadiums
etc., said Umesh Shahra, Managing Director, here.
Indian Steel, having a six lakh tonne capacity secondary
steel manufacturing facility in Kutch district, would also introduce shortly
the teakwood and embossed pattern textures for interiors, he said.
Mitsui has a 20 per cent stake in the venture, which has
procured technology from a European company, CMI. The durable colour coated
profit sheets have a longer paint life and stronger enough to withstand high
wind velocity of up to 180 km per hour unlike traditional sheets that can
withstand winds up to 120 km per hour.
The joint venture has so far invested Rs.14000.000
Millions on its plant spread over 150 acres from 2004 onwards. In the first
phase, it invested Rs.3500.000 Millions on a capacity of two lakh tonnes in the
first phase and another Rs.10500.000 Millions in the second phase to achieve
the six lakh ton capacity, Shahra said.
The estimated market size in
colour-coated profile sheet in India is about Rs.7000.000 Millions or one
million tonnes. The colour coated sheets’ market is growing at 35 per cent
unlike steel sector’s 4-5 per cent growth.
INDIAN STEEL
CORPORATION SCRAPS STEEL SEZ PLANS IN KUTCH
AHMEDABAD: Japanese conglomerate Mitsui & Co and its Indian partner Ruchi Group's Indian Steel Corporation Limited (ISC) have scrapped their steel SEZ project in Kutch.
Instead
of an SEZ, the company is now planning to set up a steel plant to cater to the
domestic market, but even this plan is uncertain due to gloomy ecnomic
scenario. Mitsui and Ruchi Group have a 20:80 joint venture company called ISC.
Mitsui is a $50-billion company while its Indian partner Ruchi Group's turnover stands at Rs 30,000 crore. "Three years ago, we had applied to the state government to allocate us 1,800-2,000 hectares in Kutch," said Umesh Shahra, managing director, Indian Steel Corporation. In 2010, the joint venture company ISC had planned to set up a steel SEZ project at Tagdi village in Kutch district.
After scraping the SEZ project, the company planned only to set up a steel plant at Kutch. "We have also kept the steel plant project on hold," said Shahra, adding, that the major reason is the economic slowdown which has resulted in the fall of domestic steel consumption to 4%, which used to be 10-12% during 2010.
Global slowdown had lead many companies like Welspun, Essar Steel, Pradip Overseas, Gallops's multi-product SEZ and Strength Real Estate to drop their SEZ projects on account of fall in demand. Recently, in January, Reliance Industries' 40% SEZ in Jamnagar was de-notified in order to cater to the domestic market.
For the time being, the company is planning to focus on developing new products. ISC on Monday launched Ultrashine XL, which the company claims to be an innovative colour-coated profile sheet of 4 ft width, having application in residential, commercial and industrial roofing.
ISC's current turnover is Rs.34000.000 Millions and it expects to ride on its innovative product range to achieve Rs 5,000 crore turnover by the end of next two years. Currently, the size of Indian steel industry is 80 million tonne, out of which 60% is of flat steel. The company is also looking for more greenfield and brownfield projects, said the managing director of the company.
MITSUI’S $1 BN STEEL VENTURE WITH RUCHI GROUP IN GUJARAT ON HOLD
Ahmedabad: Japanese conglomerate Mitsui and Co. Ltd’s plans to set up a $1 billion integrated steel complex in Gujarat in partnership with Indian company Ruchi Group has been put on hold due to the ongoing downturn in the Indian economy, a top official said.
The project was seen as Mitsui’s big-ticket investment in the world’s third-largest market for steel—and a market where its rivals ArcelorMittal and Posco have some sort of presence.
The new project was to be executed under the joint venture company Indian Steel Corp. (ISC).
Speaking on the sidelines of a product launch in Ahmedabad on Monday, Umesh Shahra, managing director of ISC, said the company would revisit the project once the economy revives, hopefully by next year after elections. “When we planned the project about three years ago GDP (growth) was at 8.5% and steel consumption was (growing) about 10-12%. Today the scenario has changed. Steel consumption has come down to 4-5% and GDP is at 5.5%. We have put the project to set up a steel complex in Kutch on hold for now,” he said.
Mitsui and Ruchi group, the promoters of Ruchi Soya, created ISC in 2005. The Japanese group has a 20% stake in the company and its Indian partner holds the rest. ISC has steel cold rolling and galvanizing plant at Bhimasar in Kutch with an annual capacity of 600,000 tonnes.
ISC trebled the capacity of this factory in June last year. According to Shahra, the company’s current revenue is around Rs.3400 crore, and it will touch Rs.5000 crore by 2015.
ISC initially wanted to build the new steel complex in a special economic zone, according to a proposal submitted to the Gujarat government. The steel plant was planned to have a production capacity of 1.2-1.5 million tonnes (mt) in the first phase, according to a state government official familiar with the matter. An expansion plan to raise the capacity of the steel complex to 3-4 mt in the second phase was also on the cards, added this person who asked not to be identified.
The state government had earmarked 1,000 hectares in Tagdi village in Kutch for the project.
Last year, the company dropped its plans to set up the project in a special economic zone because “global demand weakened while the domestic growth story was positive,” according to Shahra.
He declined comment on the source of iron ore for the project.
Steel consumption in India increased in the first quarter at the slowest pace in at least five years as demand for automobiles waned amid an economic slowdown, according to a 10 July Bloomberg report. Demand rose 0.2% to 17.8 million metric tonnes in the three months ended 30 June from a year earlier, the report said, quoting initial data from the steel ministry. Production climbed 3.9% to 19.7 million tonnes.
Shahra said Mitsui is interested in increasing its stake in the joint venture and that “it could even be an equal partnership for the new steel complex”.
Getting started on steel projects in India hasn’t been an easy journey for foreign companies. Posco’s $12 billion steel project in Odisha, billed as the largest foreign direct investment in the country, has been delayed by more than seven years due to local protests.
In July, Posco pulled out of a $5.3 billion steel mill development project in Karnataka due to delays in receiving iron mining rights and local opposition in acquiring land. About a month later, ArcelorMittal, the world's largest steel maker, said it abandoned plans for an $8.5 billion steel plant in eastern India.
The company said on 17 August that it decided to scrap the steel plant in Odisha after a 7-year delay in acquiring land. The company said it was still pursuing two other steel plant projects in Jharkhand and Karnataka states “Foreign companies were not in a very good shape when the Indian economy was conducive for steel business.
Now when the Indian economy is in a bad phase, their plans will naturally get deferred or they may even exit,” said Sanjay Jain, an analyst at Motilal Oswal Securities who tracks the steel sector.
While new companies are battling land acquisition problems, another major hurdle is sourcing iron ore, said Prakash Duvvuri, head of research, OreTeam, a mining and metal information website. “While there is a lot of iron ore available in the country, having it at the right place and of the right quality is a problem.
Gujarat, for example, may be one of the best locations to set up a steel plant, but it does not have iron ore mines,” Duvvuri said over phone.
INDIAN STEEL CORP LAUNCHES 4-FT-WIDE
COLOUR COATED PROFILE SHEET
Ahmedabad, Sept 16:
Indian Steel Corporation Ltd, a joint venture of Ruchi Group and
Japan-based Mitsui & Company, on Monday launched “Ultrashine XL”, India’s
first colour-coated profile sheet now available in four-feet width.
Available in different colours, these sheets are best suited for
residential, commercial, industrial roofings, airports, stadiums etc, said
Umesh Shahra, Managing Director, here.
Indian Steel, having a six lakh tonne capacity secondary steel
manufacturing facility in Kutch district, would also introduce shortly the
teakwood and embossed pattern textures for interiors, he said.
Mitsui has a 20 per cent stake in the venture, which has procured
technology from a European company, CMI.
The durable colour coated profit sheets have a longer paint life and
stronger enough to withstand high wind velocity of up to 180 km per hour unlike
traditional sheets that can withstand winds up to 120 km per hour.
The joint venture has so far invested Rs 1,400 crore on its plant spread
over 150 acres from 2004 onwards. In the first phase, it invested Rs 350 crore
on a capacity of two lakh tonnes in the first phase and another Rs 1,050 crore
in the second phase to achieve the six lakh ton capacity, Shahra said.
The estimated market size in colour-coated profile sheet in India is
about Rs 700 crore or one million tonnes. The
colour coated sheets’ market is growing at 35 per cent unlike steel
sector’s 4-5 per cent growth.
'STEEL INDUSTRY NEEDS FINANCE PUSH BY CENTRE'
VISAKHAPATNAM: The central
government should create a specialized institution on the lines of the Power Finance Corporation to raise and provide long-term
finance for steel industries to expand their capacity, said Rashtriya Ispat
Nigam Limited (RINL) chairman-cum-managing director P Madhusudan.
Addressing a conference on
Indian steel industry
'Vision 2025' in the city on Thursday, he said that long-term finance at
affordable rates is necessary for the growth of the steel industry in the
country.
Pointing out that expansion of
one million tonne capacity requires nearly Rs 4,000-Rs 4,500 crore, he said,
"If the country is looking at increasing steel capacity by around 200
million tonnes in the next decade, the steel industry will need around Rs
80,000 crore by way of finance." He said that the government needs to look
into the need for such an entity to raise finance for the industry if the
country has to achieve a production capacity of around 300 million tonnes by
2025.
Elaborating on bottlenecks
hurting the industry, he said, "Clear policy of land acquisition and
rehabilitation is lacking today. Rehabilitation issues go on for a long time
and need to be sorted out." Furthermore, he said that if a clear policy is
in place, projects will be able to start at a faster pace.
Among other issues, he stressed
on the need to improve infrastructure to handle raw materials, which will be
crucial for the steel industry. "For producing every tonne of steel, there
is a need for around four tonnes of raw materials to be handled. So if we
expect to produce around 300 million tonnes of steel, we need to have additional
infrastructure facilities in the country," he added.
Expressing optimism on the
growth of the steel industry, he said that factors such as comparatively lower
wage costs, strategic location for exports and efficient human resources will
prove to be beneficial for India.
Meanwhile, Bimal K Sarkar,
managing director, Stollberg India
Private Limited, stressed on the need to focus on developing human
resources and increasing manufacturing and fabrication capacities in the
country. He said that the government should work towards setting up a mega
machine shop on the lines of the one located in Ranchi.
Moreover, he said that the
biggest challenge for the industry in the next five to seven years would be to
find experienced personnel in the fields of power, cement manufacturing,
mining, which are connected to the steel industry.
Speaking on the occasion, former RINL CMD Y Siva Sagar Rao
said that steel industries need to focus on ensuring that cost and time
overruns are limited while implementing projects. He also said that the focus
should be on planning and timely execution of projects.
INDIAN STEEL CORP LAUNCHES 4-FT-WIDE
COLOUR COATED PROFILE SHEET
Our Bureau
Ahmedabad, Sept 16:
Indian Steel Corporation Ltd, a joint venture of Ruchi Group
and Japan-based Mitsui & Company, on Monday launched “Ultrashine XL”,
India’s first colour-coated profile sheet now available in four-feet width.
Available in different colours, these sheets are best suited
for residential, commercial, industrial roofings, airports, stadiums etc., said
Umesh Shahra, Managing Director, here.
Indian Steel, having a six lakh tonne capacity secondary
steel manufacturing facility in Kutch district, would also introduce shortly
the teakwood and embossed pattern textures for interiors, he said.
Mitsui has a 20 per cent stake in the venture, which has
procured technology from a European company, CMI. The durable colour coated
profit sheets have a longer paint life and stronger enough to withstand high
wind velocity of up to 180 km per hour unlike traditional sheets that can
withstand winds up to 120 km per hour.
The joint venture has so far invested Rs 1,400 crore on its
plant spread over 150 acres from 2004 onwards. In the first phase, it invested
Rs 350 crore on a capacity of two lakh tonnes in the first phase and another Rs
1,050 crore in the second phase to achieve the six lakh ton capacity, Shahra
said.
The estimated market size in colour-coated profile sheet in
India is about Rs 700 crore or one million tonnes. The colour coated sheets’
market is growing at 35 per cent unlike steel sector’s 4-5 per cent growth.
MITSUI’S $1 BN STEEL VENTURE WITH RUCHI GROUP IN GUJARAT ON HOLD
Ahmedabad: Japanese
conglomerate Mitsui and Co. Ltd’s
plans to set up a $1 billion integrated steel complex in Gujarat in partnership
with Indian company Ruchi Group
has been put on hold due to the ongoing downturn in the Indian economy, a top
official said.
The
project was seen as Mitsui’s big-ticket investment in the world’s third-largest
market for steel—and a market where its rivals ArcelorMittal
and Posco
have some sort of presence.
The
new project was to be executed under the joint venture company Indian Steel
Corp. (ISC).
Speaking
on the sidelines of a product launch in Ahmedabad on Monday, Umesh Shahra,
managing director of ISC, said the company would revisit the project once the
economy revives, hopefully by next year after elections. “When we planned the
project about three years ago GDP (growth) was at 8.5% and steel consumption
was (growing) about 10-12%. Today the scenario has changed. Steel consumption
has come down to 4-5% and GDP is at 5.5%. We have put the project to set up a
steel complex in Kutch on hold for now,” he said.
Mitsui
and Ruchi group, the promoters of Ruchi Soya,
created ISC in 2005. The Japanese group has a 20% stake in the company and its
Indian partner holds the rest. ISC has steel cold rolling and galvanizing plant
at Bhimasar in Kutch with an annual capacity of 600,000 tonnes.
ISC
trebled the capacity of this factory in June last year. According to Shahra,
the company’s current revenue is around Rs.3400 crore, and it will touch Rs.5000 crore by
2015.
ISC
initially wanted to build the new steel complex in a special economic zone,
according to a proposal submitted to the Gujarat government. The steel plant
was planned to have a production capacity of 1.2-1.5 million tonnes (mt) in the
first phase, according to a state government official familiar with the matter.
An expansion plan to raise the capacity of the steel complex to 3-4 mt in the
second phase was also on the cards, added this person who asked not to be
identified.
The
state government had earmarked 1,000 hectares in Tagdi village in Kutch for the
project.
Last
year, the company dropped its plans to set up the project in a special economic
zone because “global demand weakened while the domestic growth story was
positive,” according to Shahra.
He
declined comment on the source of iron ore for the project.
Steel
consumption in India increased in the first quarter at the slowest pace in at
least five years as demand for automobiles waned amid an economic slowdown,
according to a 10 July Bloomberg
report. Demand rose 0.2% to 17.8 million metric tonnes in the three months
ended 30 June from a year earlier, the report said, quoting initial data from
the steel ministry. Production climbed 3.9% to 19.7 million tonnes.
Shahra
said Mitsui is interested in increasing its stake in the joint venture and that
“it could even be an equal partnership for the new steel complex”.
Getting
started on steel projects in India hasn’t been an easy journey for foreign
companies. Posco’s $12 billion steel project in Odisha, billed as the largest
foreign direct investment in the country, has been delayed by more than seven
years due to local protests. In July, Posco pulled out of a $5.3 billion steel
mill development project in Karnataka due to delays in receiving iron mining
rights and local opposition in acquiring land.
About
a month later, ArcelorMittal, the world's largest steel maker, said it
abandoned plans for an $8.5 billion steel plant in eastern India. The company
said on 17 August that it decided to scrap the steel plant in Odisha after a
7-year delay in acquiring land. The company said it was still pursuing two
other steel plant projects in Jharkhand and Karnataka states
“Foreign
companies were not in a very good shape when the Indian economy was conducive
for steel business. Now when the Indian economy is in a bad phase, their plans
will naturally get deferred or they may even exit,” said Sanjay Jain,
an analyst at Motilal Oswal
Securities who tracks the steel sector. While new companies
are battling land acquisition problems, another major hurdle is sourcing iron
ore, said Prakash Duvvuri,
head of research, OreTeam, a mining and metal information website.
“While
there is a lot of iron ore available in the country, having it at the right
place and of the right quality is a problem. Gujarat, for example, may be one
of the best locations to set up a steel plant, but it does not have iron ore
mines,” Duvvuri said over phone.
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 records 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] 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.61.36 |
|
|
1 |
Rs.98.71 |
|
Euro |
1 |
Rs.77.47 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
45 |
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.