MIRA INFORM REPORT

 

 

Report Date :

13.10.2014

 

IDENTIFICATION DETAILS

 

Name :

UTTAM GALVA STEELS LIMITED

 

 

Registered Office :

Uttam House, 69, P D ‘Mello Road, Mumbai – 400009, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

29.03.1985

 

 

Com. Reg. No.:

11-035806

 

 

Capital Investment / Paid-up Capital :

Rs.1422.600 Millions

 

 

CIN No.:

[Company Identification No.]

L27104MH1985PLC035806

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMU03480B

 

 

PAN No.:

[Permanent Account No.]

AAACU1710C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Subject is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets.

 

 

No. of Employees :

1500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 51000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct 

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having satisfactory track record.

 

The rating takes into consideration company’s sound financial risk profile and fair. Liquidity position of the company.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

The company can be considered for business dealings at usual trade terms and condition.  

 

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

FITCH

Rating

A = long Term issuer rating

Rating Explanation

Adequate degree of safety and carry low credit risk.

Date

13.08.2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

INFORMATION DECLINED

 

Management Non Cooperative (91-22-66563500)

 

LOCATIONS

 

Registered / Corporate

Office :

Uttam House, 69, P D Mello Road, Carnac Bandar, Mumbai – 400 009, Maharashtra, India

Tel. No.:

91–22–23420557/ 23421968/ 66563500/ 23440440/ 23413192

Fax No.:

91–22–23430765/ 23415025/ 23441383/ 56311949/ 23434188/ 23485025/ 23481598

E-Mail :

shares@uttamgalva.com

mktg@uttamsteel.com

uttamstl@bom3.vsnl.net.in   

export@uttamsteel.com

mktg@uttamsteel.com

info@uttamgalva.com

ram@uttamgalva.com

export@uttamgalva.com

ragrawal@uttamgalva.com

Website :

http://www.uttamgalva.com

Location :

Owned

 

 

Factory 1 :

Khopoli - Pen Road, Village - Donvat, Taluka- Khalapur, District Raigad - 410202, Maharashtra, India

Tel. No.:

91-2192-278053/278055/278146

Fax No.:

91-2192-278143

 

 

Factory 2 :

Khopoli-Pali Road, Village Dahivali, Taluka Khalapur, District Raigad, Maharashtra, India

 

 

Factory 3:

Taloja -12, MIDC, District Raigad, Maharashtra, India

 

 

Branch Offices 1 :

No.896/A, 1st Main Road, 6th Cross, H.M.T. Layout, Gokul, 1st Phase, Mathikere, Bangalore - 560 054, India.

Tel. No.:

91-80-23475084

 

 

Branch Offices 2 :

Located at : 

 

  • Keonjhar, Odisha
  • Pune
  • New Delhi
  • Ahmadabad
  • Chennai
  • Indore
  • Hyderabad

 

 

Steel Service Centers :

Located at :

 

  • Mumbai, Maharashtra
  • Kolkata, West Bengal
  • New Delhi
  • Kanpur, Uttar Pradesh
  • Ghaziabad, Uttar Pradesh
  • Guwahati, Assam

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Rajinder K. Miglani

Designation :

Chairman

Address :

21-B, Embassy Apartments, 46, Nepean Sea Road, Mumbai – 400 036, Maharashtra, India

Date of Birth/Age:

66 Years

Qualification :

Science Graduate

Date of Appointment :

31.12.1998

Last Employment

Business

 

 

Name :

Mr. O P Gahrotra

Designation :

Additional Director

 

 

Name :

Mr. D L Rawal

Designation :

Additional director

 

 

Name :

Mr. Shirish T. Parikh

Designation :

Director

Qualification:

B.E. (Civil)

Date of Appointment:

29.03.1985

Other Directorship:

Frontline Rolls, Forms Limited

 

 

Name :

Mrs. Swarna Prabha Sukumar

Designation :

Director (Nominee of LIC)

Qualification:

Science Graduate

Experience :

32 Years in LIC

 

 

Name :

Mr. Anuj Miglani

Designation :

Managing Director

Date of Birth/Age:

38 Years

Qualification :

Mechanical Engineer from Imperial College, Mumbai

Date of Appointment :

01.02.1995

 

 

Name :

Mr. Ankit Miglani

Designation :

Director (Commercial)

Date of Birth/Age:

33 Years

Qualification :

Graduate in Economics from Wharton School U.S.A.

Date of Appointment :

29.01.2003

 

 

Name :

Mr. Sharad G Tudekar

Designation :

Director (Works)

Tel No. :

91-22-23436930

Qualification:

Graduate Engineer in Metallurgy

 

 

KEY EXECUTIVES

 

Name :

Mr. Gursharan S Sawhney

Designation :

Executive Director (Finance) and Chief Financial Officer

 

 

Name :

Mr. R. K. Agrawal

Designation :

Senior Vice President and Company Secretary

Tel No. :

91-22-23437831

E-mail :

info@uttamgalva.com

 

 

Name :

Mr. Pankaj

Designation :

Account Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2014

 

Category of Shareholder                                                

 

Total No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

5961700

4.19

http://www.bseindia.com/include/images/clear.gifBodies Corporate

39304520

27.63

http://www.bseindia.com/include/images/clear.gifSub Total

45266220

31.82

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

41327931

29.05

http://www.bseindia.com/include/images/clear.gifSub Total

41327931

29.05

Total shareholding of Promoter and Promoter Group (A)

86594151

60.87

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

38762

0.03

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

36311

0.03

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

69

0.00

http://www.bseindia.com/include/images/clear.gifInsurance Companies

124104

0.09

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

38938220

27.37

http://www.bseindia.com/include/images/clear.gifSub Total

39137466

27.51

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

2183621

1.53

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

7495826

5.27

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

3292008

2.31

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

3557031

2.50

http://www.bseindia.com/include/images/clear.gifClearing Members

285967

0.20

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

3270564

2.30

http://www.bseindia.com/include/images/clear.gifTrusts

500

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

16528486

11.62

Total Public shareholding (B)

55665952

39.13

Total (A)+(B)

142260103

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

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

142260103

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets.

 

 

Products :

Product Description

Item Code No. (ITC Code)

 

Cold Rolled Annealed and Unannealed Sheets and Coils

7209

Galvanised Plain and Corrugated Sheets

7210

 

 

GENERAL INFORMATION

 

No. of Employees :

1500 (Approximately)

 

 

Bankers :
  • State Bank of India, Madame CAMA Road, Mumbai – 400021, Maharashtra, India
  • Canara Bank, 144, Jawahar Nagar, Goregaon (West), Mumbai, India
  • Punjab National Bank
  • Union Bank of India
  • IDBI Bank Limited
  • Bank of Baroda
  • Indian Overseas Bank
  • ICICI Bank Limited
  • Punjab and Maharashtra Co-Operative Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2014

As on

31.03.2013

Long Term Borrowings

 

 

11.25 % Non-convertible Redeemable Debentures

0.000

1000.000

Term Loan from Banks and Financial Institutions

23380.400

16732.100

Short Term Borrowings

 

 

Working Capital Loan from Banks

1605.000

2658.000

Total

24985.400

20390.100

 

Note:

(Rs. In Millions)

Long Term Borrowing

 

Details of terms of repayment for the Secured Long-Term Borrowings and security provided in respect there of:

 

Particulars

Terms of repayment

31.03.2014

31.03.2013

 

Long Term Loan from Bank

 

 

 

Axis Bank Limited, Bank of Baroda, Dena Bank, Exim  Bank of India, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, State Bank of India and State Bank of Hyderabad

Repayable in 36 quarterly installments

ending on March 2020

3073.100

11900.000

ICICI Bank Limited -I

 

0.000

250.000

ICICI Bank Limited -II

 

0.000

1848.200

ICICI Bank Limited (OFCL) 0%

 

0.000

95.500

State Bank of India

 

0.000

68.7500

Vijaya Bank

Repayable in 28 quarterly installments end

1125.000

1375.000

Syndicate Bank

Repayable in 20 quarterly

installments ending on March, 2020

1750.000

0.000

Oriental Bank of Commerce

Repayable in 24 quarterly

installments ending on March, 2022

100.000

0.0000

ECA : NORDEA Bank (USD 0.417 Million, Previous Year USD 0.83

Million)

Repayable in 16 half yearly

installments ending on November, 2015

25.100

45.400

FCTL: Exim Bank (USD 14.625 Million, Previous Year USD Nil)

Repayable in 12 half yearly

installments ending on July, 2020

879.000

0.000

ECB Loan : State Bank of India, Indian Overseas Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, Indian Bank, Canara Bank, State Bank of Mauritius Limited, Afr Asia Bank Limited, Bank of India and ICICI Bank Limited. (USD 258.375 Million, Previous Year USD Nil)

Repayable in 12 half yearly

installments ending on July,

2020

15528.000

0.000

Total - Secured Long Term Loan From Banks

 

23380.140

16201.600

Secured Long term Loans from Financial Institutions

 

 

 

IFCI, LIC, GIC,UII

Repayable in 5 annual installments

ending on July 2014

0.000

38.800

IDFC

Repayable in 28 quarterly installments

ending on March 2018

0.000

491.800

Total - Term loans from Financial Institutions

 

0.000

530.500

Total - Secured Long Term Loan From Banks and Financial

Institutions

 

23880.140

16732.000

 

1)     11.25 % Non Convertible Redeemable Debentures are secured by first pari passu Mortgage of all immovable property and hypothecation of all movable properties including movable machineries, machinery spares, tools and accessories both present and future except Packing Machine supplied by PESMEL, Finland.

 

2)     Term Loans, ECB and FCTL from Banks and Financial Institutions are secured by mortgage and the lenders have First pari passu charge on all the present and future movable and immovable assets of the Company but not limited to plant and machinery, machinery spares, tools and accessories in possession or not, stored, or to be brought in the Company's premises or lying at any other place of the Company's representative affiliates and all the intangible assets of the Company, except for Packing machine supplied by PESMEL, Finland.

 

3)     ECA from Nordea Bank is secured by exclusive charge on Packing machine, supplied by PESMEL, Finland

 

4)     25,02,500 Equity Shares (Previous Year 25,02,500 Equity Shares) held by Promoters are pledged against term loan of Rs.95.500 Millions availed from ICICI Bank.

 

 

Short Term Borrowing

 

  • Working Capital Loans from Banks on Cash Credit (CC) and Packing Credit (PC) Accounts are Secured by Hypothecation of all Tangible, Moveable assets such as Raw Material, WIP, Finished Goods, Stock in Transit and Book Debts etc. and the second charge on fixed assets of the Company except Packing Machine supplied by PESMEL, Finland.

 

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

Prakkash Muni and Associates

Chartered Accountants

Address :

303, The Engle’s Flight, Suren Road, off Andheri Kurla Road, Near Western Express Highway Junction, Andheri (East), Mumbai – 400093, Maharashtra, India

Tel. No.:

91-22-66300900

Fax No.:

91-22-66300990

E-Mail :

prakkash@pmaca.net

auditor@pmaca.net 

Website :

www.pmaca.net

 

 

Internal Auditors :

 

Name :

K S Aiyar and Company

Address :

Mumbai, Maharashtra, India

 

 

Wholly Owned Subsidiary :
  • Uttam Galva Holdings Limited
  • Atlantis International Services Company Limited
  • Uttam Galva Steels, Netherlands, B.V.
  • Neelraj International Trade Limited
  • Uttam Galva Steels (BVI) Limited
  • Uttam Galva Steels FZE

 

 

Co-Promoter

ArcelorMittal Netherlands, B.V.

 

 

Ability to Control / Exercise Significant Influence :
  • ArcelorMittal Finanzaria, SRL
  • ArcelorMittal Cons Reunion
  • ArcelorMittal SSC, Italia
  • ArcelorMittal International FZE
  • ArcelorMittal International Luxembourg
  • ArcelorMittal Distribution Solution
  • ArcelorMittal Singapore Private Limited

 

 

Associates / Joint Ventures :
  • Grow Well Mercantile Limited
  • Evergreen Tradeplace Private Limited
  • Shree Uttam Steel and Power Limited
  • Uttam Galva Metallics Limited
  • Uttam Distribution Network Limited
  • Uttam Utkal Steels Limited
  • Sainath Trading Company Private Limited
  • Texturing Technology Private Limited
  • Moira Madhujore Coal Limited
  • Uttam Value Steels Limited (Formerly known as Lloyds Steel Industries Limited)
  • Kredence Multi Trading Limited
  • Archisha Steels Private Limited (Formerly known as Archisha Investment Private Limited)
  • Uttam Galva Ferous Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000000

Equity Shares

Rs. 10/- each

Rs. 5000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

142260103

Equity Shares

Rs. 10/- each

Rs. 1422.600 Millions

 

 

 

 

 

(Out of this 5874760 Equity Share have been Issued for consideration other than Cash and 21857924 Equity Share have been issued on Conversion of Global Depository Receipts )

 

  1. Reconciliation of the number of shares

 

Equity Shares

Number of Shares

Equity Shares at the beginning of the year

142260103

Add: Shares Issued during the year (QIP)

--

Equity Shares at the end of the year

142260103

 

  1. Details of equity shares held by shareholders holding more than 5% shares:

 

Name of Shareholder

Number of Shares

% holding

Equity Shares with Voting Rights

 

 

Kredence Multi Trading Limited

14921063

10.49%

Uttam Exports Private Limited

7324379

5.15%

Arcelomittal Netherlands BV

41327931

29.05%

Cresta Fund Limited

14101426

9.91%

Albula Investment Fund Limited

12856750

9.04%

Asia Investment Corporation (Mauritius) Limited

8442125

5.93%

Evergreen Tradeplace Private Limited

7885600

5.54%

 

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

1422.600

1422.600

1222.600

(b) Reserves & Surplus

11396.200

11043.000

9027.500

(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)

12818.800

12465.600

10250.100

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

23582.600

17745.100

19710.600

(b) Deferred tax liabilities (Net)

1958.800

1682.500

1217.000

(c) Other long term liabilities

5710.000

3257.500

3474.800

(d) long-term provisions

115.200

115.300

115.500

Total Non-current Liabilities (3)

31366.600

22800.400

24517.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2945.000

2658.000

453.500

(b) Trade payables

23447.200

18175.200

14266.600

(c) Other current liabilities

9465.400

12110.900

8734.600

(d) Short-term provisions

3.000

117.200

137.400

Total Current Liabilities (4)

35860.600

33061.300

23592.100

 

 

 

 

TOTAL

80046.000

68327.300

58360.100

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

39842.000

32175.100

28987.400

(ii) Intangible Assets

229.800

0.000

0.000

(iii) Capital work-in-progress

6941.100

5468.000

3786.900

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

239.400

234.600

120.200

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

1295.800

1064.600

871.600

(e) Other Non-current assets

6.500

32.500

238.900

Total Non-Current Assets

48554.600

38974.800

34005.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

7947.500

10372.400

10851.400

(c) Trade receivables

9837.500

6844.900

5578.400

(d) Cash and cash equivalents

463.400

1696.400

1312.600

(e) Short-term loans and advances

13243.000

10438.800

6612.700

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

31491.400

29352.500

24355.100

 

 

 

 

TOTAL

80046.000

68327.300

58360.100

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

54363.700

59110.700

51716.000

 

 

Other Income - Operational

309.000

54.000

 

 

 

Other Income

295.300

85.600

76.400

 

 

TOTAL                                     (A)

54968.000

59250.300

51792.400

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

28783.200

32521.600

31551.100

 

 

Purchases of Stock-in-Trade

11479.200

16094.600

6208.000

 

 

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

2057.700

(1862.000)

3128.200

 

 

Employees benefits expense

882.900

763.300

675.000

 

 

Other expenses

5940.700

5707.300

4873.200

 

 

Prior Period Income

(27.400)

0.000

0.000

 

 

Extraordinary Income

0.000

(200.000)

0.000

 

 

TOTAL                                     (B)

49116.300

53024.800

46435.500

 

 

 

 

 

Less

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

5851.700

6225.500

5356.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

2890.900

3046.400

2673.200

 

 

 

 

 

 

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

2960.800

3179.100

2683.700

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2148.200

1825.800

1273.700

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

812.600

1353.300

1410.000

 

 

 

 

 

Less

TAX                                                                  (H)

459.400

737.800

630.400

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

353.200

615.500

779.600

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

7394.500

6904.000

6249.400

 

 

 

 

 

Add

Transferred from Debenture Redemption Reserve Account

250.000

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transferred to Debenture Redemption Reserve

0.000

125.000

125.000

 

BALANCE CARRIED TO THE B/S

7997.700

7394.500

6904.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

19239.900

19493.900

12607.900

 

TOTAL EARNINGS

19239.900

19493.900

12607.900

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

18776.900

20299.300

19249.500

 

 

Spare Parts and Components

94.500

107.700

56.300

 

 

Capital Goods

325.300

412.200

390.100

 

TOTAL IMPORTS

19196.700

20819.200

19695.900

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic and Diluted including Extraordinary Item

2.48

5.03

6.38

 

Basic and Diluted excluding Extraordinary Item

2.33

3.72

6.38

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2014

Type

 

 

1st Quarter

Net Sales

 

 

16190.500

Total Expenditure

 

 

14652.100

PBIDT (Excl OI)

 

 

1538.400

Other Income

 

 

0.700

Operating Profit

 

 

1539.100

Interest

 

 

769.700

Exceptional Items

 

 

0.000

PBDT

 

 

769.400

Depreciation

 

 

522.200

Profit Before Tax

 

 

247.200

Tax

 

 

151.800

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

95.400

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

95.400

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

0.64

1.04

1.51

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.49

2.29

2.73

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.12

2.16

2.59

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.11

0.14

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.07

1.64

1.97

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.88

0.89

1.03

 

 

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

1222.600

1422.600

1422.600

Reserves & Surplus

9027.500

11043.000

11396.200

Net worth

10250.100

12465.600

12818.800

 

 

 

 

long-term borrowings

19710.600

17745.100

23582.600

Short term borrowings

453.500

2658.000

2945.000

Total borrowings

20164.100

20403.100

26527.600

Debt/Equity ratio

1.967

1.637

2.069

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

51716.000

59110.700

54363.700

 

 

14.299

(8.031)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

51716.000

59110.700

54363.700

Profit

779.600

615.500

353.200

 

1.51%

1.04%

0.65%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

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

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

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

26]

Buyer visit details

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

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

Bench:- Bombay

Lodging No. :

ARBPL/963/2010

Failing Date:-

18/08/2010

Reg. No.:-

ARBP/303/2011

Reg. Date:-

22/03/2011

Petitioner:-

CENTRAL WAREHIUSING

Respondent:-

UTTAM GALVA STEELS LIMITED

Petn.Adv:-

S.I. SHAH AND CO (0)

Resp. Adv.:

M.S. BHARDWAJ (1) (0)

District:-

MUMBAI

Bench:-

SINGLE

Category:-

ARBITRATION ACT.

Status:-

Admitted (Unready)

Stage:-

ARBP FOR HEARING AND FINAL DISPOSAL U/S 34 (HOB)

Next Date:-

25/09/2014

Coram:-

HON’BLE SMT. JUSTICE A.A. SAYED

Last Date :-

16/10/2014

Stage:-

ARBP FOR HEARING AND FINAL DISPOSAL U/S 34

Last Coram :-

HON’BLE SMT. JUSTICE A.A. SAYED

 

Act. :

Arbitration and Conciliation Act,1966

Under Section:- 34

 

 

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2014

As on

31.03.2013

Long Term Borrowings

 

 

Other loans ( SICOM and Others)

202.200

13.000

Short Term Borrowings

 

 

Working Capital Loan from Bank

1340.000

0.000

Total

1542.200

13.000

 

 

 

 

 

 

CORPORATE INFORMATION

 

The company is promoted by Miglani family initially in the year 1985 and ArcelorMittal has joined as Co-Promoter in the year 2009-10.

 

The Company is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets situated at Khopoli, Mumbai Western part of India. The Company is in the business of procuring Hot Rolled Steel (HR) and processing it in to CR and further in to GP and PPGI. Its current facilities are mainly in thicker and thinner guage material. The CR not used for galvanizing is converted to value added grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL) Sheets and also sold as Full Hard CR in Domestic and Overseas market. The market segment for value added grades include Appliance, General Engineering, Automative, Construction, Packaging, Sandwich Panels and Others

 

OPERATIONS:

 

Amid sluggish macroeconomic situation and weak business sentiments, combined by lower GDP growth rate of 4.6% and depreciating Indian rupee with high volatility, the year 2013-2014 proved to be a challenging year.

 

During this year the Company has achieved a turnover of Rs.57545.600 Millions as against Rs.62523.400 Millions in the previous year. The Company posted Profit before Tax of Rs.812.600 Millions as against Rs.1353.300 Millions in the previous year. Reduction in Gross Revenue on account of shrinkage in International trading business, higher raw material cost and lower demand growth of the Company’s products from Auto, Industrial and Construction Segments, led to decline in the Profit before Tax.

 

The Company continued its long term strategy to invest in modernization and qualitative growth. The SAP system which was implemented with effect from 1st January, 2013 is now stabilized and process owners and users are carrying out all key activities through the system. The Company is also in the process of implementing the Global Availability to Promise (GATP) module which is an advanced feature in the SAP system to improve the delivery performance to their customers.

 

The Company has set up a Business Excellence Centre to drive operational excellence across all the functions which have yielded significant positive results. They have engaged M/s. Accenture to initiate the Marketing Transformation Program. This program will help the Company develop customer insight driven value proposition, optimize the sales and operations planning and improve their sales force productivity for better market visibility and net realization.

 

The Company has always emphasized on achieving operational excellence and continues to focus on customer satisfaction and delight. Backed by strong fundamentals and robust plans, the Company is fully prepared to face current challenges and benefit from expected medium and long term growth in Indian economy.

 

In its pursuit to achieve its long term strategy of modernization, the Company has envisaged various projects and also looking for the expansion and the modernization of current projects, consequently in view of the Capex requirement for proposed expansion projects of the Company, the Board of Directors are of the opinion that Cash _low should be conserved and hence decided to plough back the entire profit earned by the Company and have not recommended any dividend.

 

EXPORT:

 

The Company has registered Growth in exports volume by 15.2% with growth in sales of 25% in North America, 104% in Europe and 58% in Asia. The Company has served 148 countries since its entry into the export business and is recognized as quality supplier in both developed and emerging markets. The Company has continued to maintain its presence in the International Markets inspite of the Global slowdown and currency crisis in some of the countries.

 

The Global Economic situation is showing significant signs of revival. As per World Economic Outlook Report April, 2014 published by International Monetary Fund expected growth across mature economies is 2.25% for 2014-2015, an increase of 1% compared to year 2013. The outlook for emerging and developing economies is also showing positive trends in line with their expectations and the projected growth is about 5% for the year 2014. This positive trend is expected to provide wider base to their international business.

 

The Company has been the recipient of 19 EEPC Awards from the Ministry of Commerce and Industry, Government of India for its outstanding exports performance.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

Outlook

 

The domestic flat Steel consumption in the relevant business segments is estimated to grow at 6% to 8%. The need, however, for value added and niche products are likely to surge and have been identified as major focus area for the Company.

 

Economies like USA and Japan are expected to do well which will help in maintaining a balance in supply and demand. The commodity segment, however, will be under pressure due to overcapacity from Chinese mills.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10431919

13/06/2013

12,562,450,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND,  PANDURANG BUDHKAR MARG, WORLI,  MUMBAI, MAHARASHTRA - 400025, INDIA

B77441731

2

10424495

29/04/2013

815,217,000.00

EXPORT-IMPORT BANK OF INDIA

CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B74694381

3

10359845

17/04/2013 *

1,500,000,000.00

VIJAYA BANK

CORP. BKG. BRANCH, MAKER CHAMBER IV (REAR PORTION), 222, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B74584731

4

10324531

21/12/2011

810,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B28341154

5

10299516

08/08/2013 *

7,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B83157461

6

10245187

21/06/2010

2,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

A90518861

7

10123656

02/09/2008

810,000,000.00

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

ITC CENTRE, 3RD FLOOR760, ANNA SALAI, CHENNAI - 600 002, TAMIL NADU, INDIA

A46256640

8

10072969

30/10/2007

131,281,344.00

UNIT TRUST OF INDIA INVESTMENT ADVISORY SERVICES

LIMITED

UTI TOWER GN BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

A25414228

9

10048847

23/04/2007

2,142,250,000.00

UNIT TRUST OF INDIA INVESTMENT ADVISORY SERVICES
LIMITED

UTI TOWER GN BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

A14219331

10

90227081

06/12/2005

2,795,000.00

UNITED INDIA INSURANCE COMPANY LIMITED

24; WHITES ROAD, CHENNAI, TAMIL NADU, INDIA

-

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Land

·         Building and Site Development

·         Flat and Office Premises

·         Plant and Machinery

·         Furniture and Fixture

·         Office Equipments

·         Vehicles

·         Computers 

·         Housing Complex

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2014

 

(Rs. In Millions)

Particulars

For 3 Months Ended

 

30.06.2014

1. Income from operations

 

a) Net sales/ Income from operation (net of excise duty)

16141.300

b) Other operating income

49.200

Total income from Operations(net)

16190.500

2.Expenditure

 

a) Cost of material consumed

11771.800

b) Purchases of stock in trade

2089.000

c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(873.400)

d) Employees benefit expenses

234.300

e) Depreciation and amortization expenses

522.200

f) Other expenditure

1430.400

Total expenses

15174.300

3. Profit from operations before other income and interest and Exceptional Items

1016.200

4. Other income

0.700

5. Profit before Interest and Exceptional Items (3+4)

1016.900

6. Finance costs

769.600

7. Profit after Interest and Finance Charges 

247.200

8. Exceptional item

--

9. Profit from ordinary activities before tax Expense: (7+8)

247.200

10.Tax expenses

 

Current Tax

51.800

- MAT Credit

--

- Wealth Tax

--

- Deferred Tax

100.000

- Prior Period Tax

--

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

95.400

12.Extraordinary Items (net of Tax)

--

13. Prior Year Items (Net of Tax)

--

14.Net Profit / (Loss) for the period (11 -12)

95.400

15.Paid-up equity share capital (Nominal value Re. 1/- per share)

1422.600

16. Paid up Debentures

1000.000

17. Reserves excluding Revaluation Reserves

--

18. Debenture Redemption Reserve

--

19. Basic and Diluted EPS (in Rs) before Extraordinary Items (not annualised)

0.67

     Basic and Diluted EPS ( in Rs) after Extraordinary Items (not annualised )

0.67

20. Particulars of shareholding

 

- Number of shares

55665952

- Percentage of shareholding

39.13%

21. Promoters and Promoters group Shareholding-

 

a) Pledged /Encumbered

86594151

Number of shares

2502500

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

2.89%

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

1.76%

 

 

b) Non  Encumbered

 

Number of shares

84091651

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

97.11%

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

59.11%

 

Note:

 

1. The above financial results were reviewed by the Audit Committee and approved by the Board of Directors in their respective meeting held on August 08, 2014.


2. Previous year's figures have been regrouped / rearranged wherever necessary.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

48

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

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

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