MIRA INFORM REPORT
|
Report Date : |
30.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
2nd Floor, Jeevan Deep Building, Parliament Street, New
Delhi - 110001 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
05.12.1984 |
|
|
|
|
Com. Reg. No.: |
55-019492 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 79.476 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1984PLC019492 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Steel Ingots and G.P/G.C. Sheets and
Coils. |
|
|
|
|
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 |
|
Maximum Credit Limit : |
USD 2200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payment
terms are reported to be usually correct. The company can be considered normal or business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks over
coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs arm
that ensures that companies file all the information required by the Companies
Act is the latest manifestation of a messy fight between a father and his
adopted son for the control of Rs 40000 mn business empire. The Central Bureau
of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as
bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = BBB- |
|
Rating Explanation |
Moderate degree of safety. It carry moderate credit risk. |
|
Date |
04.06.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A3 |
|
Rating Explanation |
Moderate degree of safety. It carry higher credit risk. |
|
Date |
04.06.2014 |
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. S P Singla |
|
Designation : |
Vice President in Marketing |
|
Contact No.: |
91-9313904878 |
|
Date : |
07.10.2014 |
LOCATIONS
|
Registered Office : |
2nd Floor, Jeevan Deep Building, Parliament Street, New
Delhi – 110001, India |
|
Tel. No.: |
91-11-23742401 |
|
Mobile No.: |
91-9313904878/ 9873232578 (Mr. S P Singla) |
|
Fax No.: |
91-11-23742403 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
2000 sq. ft. |
|
Location : |
Rented |
|
|
|
|
Marketing Office : |
GH-6/223, Meera Bagh, Paschim Vihar, New Delhi – 110087, India |
|
Tel. No.: |
91-11-32568055 |
|
Fax No.: |
91-11-25274665 |
|
E-Mail : |
|
|
Area : |
1000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Branch Office / Administrative Office : |
G.T. Road, Pawa, Sahnewal, Ludhiana – 141120, Punjab, India |
|
Tel. No.: |
91-161-2511412/ 13 |
|
Fax No.: |
91-161-2511414 |
|
|
|
|
Factory : |
Iron and Steel
Units
Tel No.: 91-161-2511412/2511413
Tel No.: 91-1762-265700/ 657781 Fax No.:91-1762-265710 Area : 70 Acres Location : Owned
Tel No.: 91-161-2844499
Tel No.: 91-657-3290209 Power Units(*)
Tel No.: 91-657-3290209 (*) Petition for approval of Scheme of Arrangement under section 394
for hiving off of these units is pending with Hon’ble Delhi High Court at New
Delhi. |
DIRECTORS
As On 31.03.2014
|
Name : |
Mr. Kapil Kumar Jain |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rahul Jain |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Vikram Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Suresh Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Kumar Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashwani Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surinder Kumar Vig |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S P Singla |
|
Designation : |
Vice President in Marketing |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of Shareholder |
No. of Shares |
Percentage of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
||
|
|
|
|
|
|
2575200 |
32.62 |
|
|
2189800 |
27.74 |
|
|
4765000 |
60.35 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
4765000 |
60.35 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
|
|
|
|
132830 |
1.68 |
|
|
|
|
|
|
1612462 |
20.42 |
|
|
1344777 |
17.03 |
|
|
40131 |
0.51 |
|
|
3296 |
0.04 |
|
|
36835 |
0.47 |
|
|
3130200 |
39.65 |
|
Total Public shareholding (B) |
3130200 |
39.65 |
|
Total (A)+(B) |
7895200 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
7895200 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Steel Ingots and G.P./G.C. Sheets and
Coils. |
||||||||
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|
Products : |
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GENERAL INFORMATION
|
No. of Employees : |
500 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M/s. Raj Gupta and Company Chartered Accountants |
|
Address : |
549/10, Sutlej Tower, Opposite Petrol Pump, Near Fountain Chowk, Ludhiana-141001,
Panjab, India. |
CAPITAL STRUCTURE
As On 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 80.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7895200 |
Equity Shares |
Rs. 10/-
each |
Rs.78.952
Millions |
|
|
Add: Shares Forfeited(Amount Paid-up) |
|
Rs.0.524
Million |
|
|
Total |
|
Rs.79.476Millions |
The detail of shareholders holding more than 5% shares
|
Name of Shareholders |
No. of Shares |
% of holding |
|
Vallabh Steels Limited |
666600 |
8.44 |
|
Associated Leasing Limited |
747400 |
9.47 |
|
Shweta Jain |
446400 |
5.65 |
The reconciliation of number of shares outstanding is set out below:
|
Name of the Shareholder |
No. of shares |
|
Shares outstanding at the beginning of the year (Nos.) |
7895200 |
|
Shares Issued during the year |
- |
|
Shares bought back during the year |
- |
|
Shares outstanding at the end of the year (Nos.) |
7895200 |
Terms/rights attached to equity shares
The company has only one class of equity shares
having a par value of Rs.10/- per share. Each holder of equity shares is
entitled to one vote per share.
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 |
79.476 |
79.476 |
76.476 |
|
(b) Reserves & Surplus |
721.010 |
676.929 |
653.787 |
|
(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) |
800.486 |
756.405 |
730.263 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
386.307 |
542.572 |
453.466 |
|
(b) Deferred tax liabilities (Net) |
131.425 |
129.350 |
116.846 |
|
(c) Other long term
liabilities |
22.775 |
95.551 |
88.414 |
|
(d) long-term
provisions |
2.974 |
3.179 |
2.854 |
|
Total Non-current
Liabilities (3) |
543.481 |
770.652 |
661.580 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
741.143 |
742.301 |
605.250 |
|
(b) Trade
payables |
325.696 |
278.720 |
212.471 |
|
(c) Other
current liabilities |
221.986 |
155.112 |
167.760 |
|
(d) Short-term
provisions |
0.409 |
0.516 |
9.586 |
|
Total Current
Liabilities (4) |
1289.234 |
1176.649 |
995.067 |
|
|
|
|
|
|
TOTAL |
2633.201 |
2703.706 |
2386.910 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
846.654 |
1110.240 |
1009.623 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
15.021 |
7.079 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
190.688 |
111.703 |
96.438 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
15.385 |
13.335 |
12.662 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1052.727 |
1250.299 |
1125.802 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
426.321 |
445.870 |
376.397 |
|
(c) Trade
receivables |
1033.965 |
618.126 |
517.458 |
|
(d) Cash
and cash equivalents |
38.492 |
26.444 |
23.885 |
|
(e)
Short-term loans and advances |
81.696 |
362.967 |
346.368 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
1580.474 |
1453.407 |
1264.108 |
|
|
|
|
|
|
TOTAL |
2633.201 |
2703.706 |
2389.910 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4002.458 |
3829.121 |
3830.943 |
|
|
|
Other Income |
0.270 |
1.647 |
0.800 |
|
|
|
TOTAL |
4002.728 |
3830.768 |
3831.743 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
3443.919 |
3300.999 |
3130.477 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-trade |
(40.091) |
(103.701) |
74.205 |
|
|
|
Employees benefit expenses |
52.422 |
55.671 |
48.185 |
|
|
|
Other expenses |
325.970 |
330.483 |
299.840 |
|
|
|
TOTAL |
3782.220 |
3583.452 |
3552.707 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION |
220.508 |
247.316 |
279.036 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
84.795 |
116.184 |
99.551 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
135.713 |
131.132 |
179.485 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
66.320 |
67.154 |
56.716 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
69.393 |
63.978 |
122.769 |
|
|
|
|
|
|
|
|
|
Less |
Exceptional
Items |
0.000 |
28.332 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
16.075 |
12.504 |
47.704 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
53.318 |
23.142 |
75.065 |
|
|
|
|
|
|
|
|
|
Less |
Appropriations |
|
|
|
|
|
|
Proposed Dividend |
7.895 |
0.000 |
7.895 |
|
|
|
Tax on Dividend |
1.342 |
0.000 |
1.281 |
|
|
|
Transfer to General Reserve |
2.500 |
2.500 |
2.500 |
|
|
|
BALANCE CARRIED
TO THE B/S |
41.581 |
20.645 |
63.389 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB basis |
443.564 |
621.074 |
844.902 |
|
|
TOTAL EARNINGS |
443.564 |
621.074 |
844.902 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material, Spare parts and components |
31.601 |
63.074 |
42.327 |
|
|
|
Capital Goods |
27.765 |
42.790 |
103.345 |
|
|
TOTAL IMPORTS |
59.366 |
105.864 |
145.672 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
6.75 |
2.93 |
9.51 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
1.33 |
0.60 |
1.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.73 |
1.67 |
3.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.84 |
2.48 |
5.37 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.08 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.41 |
1.70 |
1.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23 |
1.24 |
1.27 |
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 |
76.476 |
79.476 |
79.476 |
|
Reserves & Surplus |
653.787 |
676.929 |
721.010 |
|
Net
worth |
730.263 |
756.405 |
800.486 |
|
|
|
|
|
|
long-term borrowings |
453.466 |
542.572 |
386.307 |
|
Short term borrowings |
605.250 |
742.301 |
741.143 |
|
Total
borrowings |
1058.716 |
1284.873 |
1127.450 |
|
Debt/Equity
ratio |
1.450 |
1.699 |
1.408 |
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 |
3830.943 |
3829.121 |
4002.458 |
|
|
|
-0.048 |
4.527 |
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 |
3830.943 |
3829.121 |
4002.458 |
|
Profit |
75.065 |
23.142 |
53.318 |
|
|
1.96% |
0.60% |
1.33% |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---------------------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------------------- |
|
26] |
Buyer visit details |
--------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
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 |
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
From Shareholders, Directors and their relatives |
0.000 |
119.288 |
|
Total |
0.000 |
119.288 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10396524 |
22/12/2012 |
55,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B65741308 |
|
2 |
10395565 |
15/12/2012 |
170,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER, DHOLEWAL, G.T. ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
B65345779 |
|
3 |
10326093 |
03/05/2012 * |
70,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B38425781 |
|
4 |
10307831 |
24/06/2013 * |
185,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B78264694 |
|
5 |
10274780 |
03/09/2011 * |
70,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B21380209 |
|
6 |
90044149 |
19/08/2005 * |
66,500,000.00 |
PUNJAB NATIONAL BANK |
INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA, LUDHIANA, PUNJAB - 141003, INDIA |
- |
|
7 |
90061861 |
23/07/2012 * |
1,395,900,000.00 |
STATE BANK OF INDIA |
SPECIALISED COMMERCIAL BRANCH, MILLER GANJ, PAHWA HOSPITAL COMPLEX, LUDHIANA, PUNJAB - 141003, INDIA |
B55838254 |
|
8 |
90040509 |
19/08/2005 * |
35,000,000.00 |
PUNJAB NATIONAL BANK |
INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA, LUDHIANA, PUNJAB - 141001, INDIA |
- |
|
9 |
90056089 |
27/03/2014 * |
721,500,000.00 |
PUNJAB NATIONAL BANK |
PUNJAB NATIONAL BANK, INDUSTRIAL AREA, LUDHIANA, |
C02610558 |
|
10 |
90059530 |
19/08/2005 * |
31,500,000.00 |
PUNJAB NATIONAL BANK |
OVERSEAS BRANCH, INDUSTRIAL AREA, LUDHIANA, PUNJAB - 141001, INDIA |
- |
* Date of charge modification
OPERATIONS
During the year, The Company has registered a higher gross revenue and operating income of Rs.4002.728 Millions as compared to Rs. 3830.767 Millions in the previous year. The Company has recorded a jump of about 20 % in profit before interest, depreciation and tax which has risen from Rs. 182.820 Millions in previous year to Rs.220.508 Millions. Accordingly the company has recorded a sharp jump of about 130 % in profit after tax which has risen from Rs. 23.143 Millions in previous year to Rs. 53.318 Millions on account of better sales realisations.
EXPORTS
The Board hereby inform you that due to continued slow down in the industry in general and in Iron and Steel Industry in particular and despite all efforts made by the management for exports of its products, the company's exports have declined from Rs. 621.073 Millions to Rs. 443.564 Millions because of stiff competition from Chinese products. The company has continued to exports its production in various countries such as Burkina, Somalia, Mozambique, Turkmenistan and Angola.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
(a) Industry Structure and Development
The Company is engaged in the manufacturing
and marketing of Coated Flat products i.e. Galvanised Sheets (Plain &
Corrugated) & Color Coated Sheets and also Steel Ingots which fall within
the single segment of "Iron & Steel Industry."
In the last financial year despite pressure on
steel market, the prices of steel input products remained high due to weakened
rupee, which impacted the overall higher raw material prices. The management is
seized of the matter and making all out efforts to improve the performance of
the Company by optimum utilisation of resources.
(b) Company's Performance:
The Gross turnover of the Company during the
year 2013-14 was Rs. 4002.728 Millions as against Rs. 3830.767 Millions in the
previous year. The net profit after tax has increased to Rs. 53.318 Millions as
compared to Rs. 23.143 Millions in the previous year.
(c) Dividend:
The Directors are pleased to recommend
dividend of 10 % (Re.1.00 per equity share of Rs.10/- each) for the year ended
31.03.2014.
(d) Outlook: Opportunity, Threats, Risks and Concerns:
The downtrend in the Indian Economy is expected to stabilize and revert to a modest growth of 5.5% to 6%, the growth mainly driven by the revival of the developed economies. Due to the expected political stability and revival of increased investments, the industrial segment is set to grow. There is a time lag of about a year for the Iron & Steel industry to follow suit. Though the Iron & Steel industry as a whole continues to witness erratic trends; the diversified product mix and cost control measures are expected to maintain the turnover and profitability of the Company in current year. The growth of steel industry will also depend upon new Government's spending in various sectors of the economy such as infrastructure and construction etc. The directors perceive following factors which may pose threat, risk & concern for the Iron & Steel Industry in general and the company in particular:
1. Any adverse conditions of user sector to which it caters, thus adversely affecting the demand.
2. Quantitative restrictions and/or additional tariffs of exports from India by importing countries.
3. Cheap imports to India may exert pressure on domestic demand and prices.
4. Unpredictable and sharp cyclical movements in the raw material and other input prices.
5. Any change in Govt. policies pertaining to steel industry may affect the profitability of the company.
The opportunities of growth for the company as
detailed below are manifold in view of its Strengths which may also counter the
above concerns:-
- It is expected that better trends will emerge and may improve also in the times ahead. The company by virtue of quality and market oriented specification of its products have posted profitable operations during the most trying times in the past notwithstanding minor declines. As such current conditions may pave way for improved performance in future.
- Well established customers base for different products for the last over 29 years.
- The company's recently adopted strategy of taking its products to new markets in India and abroad has been a great success. Encouraging feedback from overseas customers gives optimism of momentum for its growth.
- The Company is fully poised to reap the benefits of economies of scale and it will be in a better position to negotiate raw material prices on long term bulk lifting basis & definite savings on overheads will bring down the cost per unit of production and lead to higher profitability.
- The Company has strategic advantage, as its units are located in the industry friendly area having all infrastructural facilities.
FIXED ASSETS
- Land
- Building
- Furniture and
Fixture
- Plant and
Machinery
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.32 |
|
|
1 |
Rs.99.00 |
|
Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
|
Information Gathered
by : |
HEN |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--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.