MIRA INFORM REPORT

 

 

Report Date :

18.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ELECTROTHERM (INDIA) LIMITED

 

 

Registered Office :

A–1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380015, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

29.10.1986

 

 

Com. Reg. No.:

04-009126

 

 

Capital Investment / Paid-up Capital :

Rs.234.800 Millions

 

 

CIN No.:

[Company Identification No.]

L29249GJ1986PLC009126

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing of Electronic furnaces and other capital equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and services relating to Electric furnaces, other capital equipments and battery operated vehicles.

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Sick Company

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Not Available

 

 

Comments :

The subject company is declared as a sick unit by board for Industrial and Financial Reconstruction.

 

The management has register case (Case No. 29/2014) with Board for Industrial and Financial reconstruction on February 28, 2014.

 

The order on which for approval for rehabilitation proposal yet to be heard.

 

Business is active. Payment terms are slow and delayed.

 

The company can be considered for business dealing on a fully secured 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.

 

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 DENIED

 

MANAGEMENT NON CO-OPERATIVE (CONTACT NO. : 91-2717-660550)

 

 

 

LOCATIONS

 

Registered Office :

A–1, Skylark Apartment, Satellite Road, Satellite, Ahmedabad – 380 015, Gujarat, India

Tel. No.:

91-79-26768844

Mobile No.:

91-9825159296 (Mr. Shailesh Bhandari)

Fax No.:

91-79-26768855

E-Mail :

sec@electrotherm.com

ho@electrothrm.com

Website :

www.elctrotherm.com

Area:

3500 sq. ft.

Location :

Owned

 

 

Corporate office / Factory 1 :

Engineering and Projects Division

Survey No. 72, Village : Palodia, Taluka : Kalol, District : Gandhinagar – 382 115, Gujarat, India

Tel. No.:

91-2717-234554/ 660550/ 55/ 56/ 57

Fax No.:

91-2717-237612/ 234616

 

 

Factory 2 :

Special Steel, DI Pipe and Electric Vehicle Division

Survey No. 325, Village : Samakhiyali, Taluka : Bhachau, District : Kutch, Gujarat, India

 

 

Factory 3 :

Wind Farm Project

Village : Dhank, Taluka : Upleta, District : Rajkot, Gujarat, India

 

 

Factory 4 :

Electric Vehicle Division

Survey No. 689 Paiki, Village : Thol, Taluka : Kadi, District: Mehasana – 382715, Gujarat, India 

 

 

Factory 5 :

Transmission Line Tower Division

Village : Juni Jithardi, Taluka : Karjan, District : Vadodara, Gujarat, India

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Mukesh Bhandari

Designation :

Chairman

 

 

Name :

Mr. Shailesh Bhandari

Designation :

Managing Director

 

 

Name :

Mr. Avinash Bhandari

Designation :

Joint Managing Director and CEO

 

 

Name :

Mr. Nilesh Desai

Designation :

Director

 

 

Name :

Mr. Ram Singh

Designation :

Director

 

 

Name :

Mr. Pradeep Krishna Prasad

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Jigar Shah 

Designation :

Company Secretary

 

 

Name :

Mr. Pawar Gaur

Designation :

Chief Executive Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(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

2280575

19.87

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

975000

8.50

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

3255575

28.37

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals (Non-Residents Individuals / Foreign Individuals)

512500

4.47

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

512500

4.47

Total shareholding of Promoter and Promoter Group (A)

3768075

32.83

(B) Public Shareholding

 

 

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

 

 

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

9800

0.09

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

100

0.00

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

1366666

11.91

http://www.bseindia.com/include/images/clear.gifForeign Financial Institutions

1366666

11.91

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

1376566

11.99

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

 

 

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

1326271

11.56

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

1344415

11.71

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

246693

2.15

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

3414354

29.75

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

2000000

17.43

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

52493

0.46

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

1292231

11.26

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

69630

0.61

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

6331733

55.17

Total Public shareholding (B)

7708299

67.17

Total (A)+(B)

11476374

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)

11476374

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Electronic furnaces and other capital equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and services relating to Electric furnaces, other capital equipments and battery operated vehicles.

 

 

Products :

ITC Code No.

 

Product Description

851420

Electronic Induction Furnace

851440

Induction Heating Equipment

8502

Electricity Power Generation

7207

Steel Billets

7213

Steel Bars

8711

Electric Vehicle

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

·         Bank of India

·         State Bank of India

·         Punjab National Bank

·         State Bank of Travancore

·         Corporation Bank

·         Bank of Baroda

·         Dena Bank

·         Oriental Bank of Commerce

·         Union Bank of India

·         Canara Bank

·         Standard Chartered Bank

·         Allahabad Bank

 

 

Facilities :

Secured Loan

31.03.2014

(6 Months)

(Rs. in Millions)

30.09.2013

(12 Months)

(Rs. in Millions)

Long-term Borrowings

 

 

Term Loans from Banks

 

 

Rupee Term Loan

1230.900

2156.500

Foreign Currency Term Loan

240.000

436.500

Hire Purchase Finance for Vehicles

(Secured By Hypothecation of Specific Vehicles)

0.300

0.700

Short-term borrowings

 

 

Secured loan from Banks

Current Maturities of Long terms borrowings

17723.100

16466.100

Working Capital Facilities

9857.400

9986.800

Total

29051.700

29046.600

Note:

 

Secured by first Charge by way of Equitable mortgage of all immovable properties and hypothecation of specified movable assets situated at Vatva, Palodia, Dhank, Samakhiyali – Kutch, and Chhadawada –Bhachau and Juni Jithardi, Karjan, Vadodara and Bank Fixed Deposits & as second charge on all Stock-in-Trade & Receivables. Further the loans are guaranteed by the personal guarantees of some of Directors.

 

ECB Loan is secured by Pari Passu Charge over the movable assets and first Pari Passu Charge on immovable assets of the company.

 

Secured by first Charge by way of Equitable mortgage of all immovable properties and hypothecation of specified movable assets situated at Vatva, Palodia, Dhank, Samakhiyali – Kutch, and Chhadawada –Bhachau and Juni Jithardi, Karjan, Vadodara and Bank Fixed Deposits & as second charge on all Stock-in-Trade & Receivables. Further the loans are guaranteed by the personal guarantees of some of Directors.

 

(b) Secured by first charge by way of hypothecation of all stocks of raw material, packing materials, fuel, stock in process, semi finished and finished goods, stores and spares not relating to the plant and machinery and stocks in trade & receivables and second charge on all movable fixed assets & second and subservient charge by way of equitable mortgage of all immovable properties situated at Vatva, Palodia, Dhank, Samakhyali- Kutch and Chhadawada -Bhachau. Further the loans are guaranteed by the personal guarantees of some of the Directors of the company.

 

 

 

 

Banking Relations :

 

 

 

Statutory Auditors :

 

Name :

Mehtaa Lodha and Company

Chartered Accountant

Address :

Ahmedabad, Gujarat, India

 

 

Cost Auditors :

 

Name :

V H Savaliya and Company

Cost Accountant

Address :

Ahmedabad, Gujarat, India

 

 

Internal Auditors :

 

Name :

RSM Astute Consulting Private Limited

Address :

Mumbai, Maharashtra, India

 

 

Subsidiary Companies:

·         Jinhua Indus Enterprises Limited

·         Jinhua Jahari Enterprises Limited

·         Bhaskarpara Coal Company Limited

·         ET Elec-Trans Limited

·         Hans Ispat Limited

·         Shree Ram Electro Cast Limited

·         Shree Hans Papers Limited

·         Electrotherm Mali SARL

 

 

Enterprises owned or significantly influenced by key management personnel or their relatives*(Except foreign

companies):

·         Ahmedabad Aviation and Aeronautics Limited

·         Western India Speciality Hospital Limited

·         E-Motion Power Limited

·         Indus Elec-Trans Private Limited. *

·         Jayshri Petro-Yarn Private Limited.

·         Adroit Trading and Investment Company.

·         EIL Hospitality Private Limited.

·         EIL Software Services Offshore Private Limited.

·         EIL Technology Private Limited.

·         Electrotherm Engineering and Projects Limited.

·         Kappa Consultancy Private Limited.

·         Electrotherm Foundation.

·         Gujarat Mint Alloys Limited.

·         Electra Transformer Limited. (Formerly Known as Electra Transformer Private Limited.)

·         Airfones Innovatives Private Limited

·         BNB Real Estate Private Limited

·         ETAIN Energy Holdings Limited

·         Electrotherm Solar Limited (Formerly Known as Electrotherm Energy Holdings Ltd.)

·         Palace Solar Energy Private Limited.

·         SBRB Real Estate Private Limited.

·         Bhandari Real Estate Private Limited.

·         ETAIN Immodo Renewables Limited.

·         Arjun Ceramics and Carbon Private Limited.

·         Indus Chargers and Controllers Private Limited.

·         Arjun Solar One Private Limited

·         Arjun Green Power Private Limited.

·         Arjun Raj Solar One Private Limited.

·         Bhandari Charitable Trust

 

* Enterprises namely Palace Tours and Air Charters Private Limited., Crystal Real Estate Private Limited, Afghan Trading Private Limited., Bhandari Brothers Commercial Private Limited, EIL Realty Private Limited., EIL Software Private Limited, Indus Real Estate Private Limited, New Delhi Real Estate Private Limited, Palace Infrastructure Private Limited, S N Advisory Private Limited., Suraj Real Estate Private Limited and Suraj Advisory Services Private Limited have amalgamated with Indus Elec-Trans Private Limited, in pursuance to Scheme of Amalgamation vide the order dated September 13, 2013 of Hon’Ble Gujarat High Court.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.10/- each

Rs. 250.000 Millions

25000000

6% Non-Cumulative Redeemable Preference Shares

Rs.10/- each

Rs. 250.000 Millions

 

TOTAL

 

Rs. 500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

11476374

Equity Shares

Rs.10/- each

Rs. 114.800 Millions

12000000

6% Non-Cumulative Redeemable Preference Shares

Rs.10/- each

Rs. 120.000 Millions

 

TOTAL

 

Rs. 234.800 Millions

 

NOTE:

 

A reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period.

 

Equity Shares

No. of shares

Shares outstanding at the beginning of the Period

11,476,374

Shares outstanding at the end of the Period

11,476,374

 

6% Non-Cumulative Redeemable Preference Shares

No. of shares

Shares outstanding at the beginning of the Period

12,000,000

Shares outstanding at the end of the Period

12,000,000

 

Rights, preference and restriction attached to Equity Shares

 

(i) The face value of the Equity shares is Rs.10/- per share . Each holder of equity shares is entitled to one vote per share.The company declares and pays dividend in Indian Rupees. During the period, the company has not declared any dividend.

(ii) The shareholders are not entitled to exercise any voting right either personally or proxy at any meeting of the Company in cases calls or other sums payable have not been paid.

(iii) In the event of liquidation of the company, holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

Rights, preference and restriction attached to Preference Shares

 

(i) The face value of the Preference shares is Rs.10/- per share . The Preference share holder does not have any voting rights. During the period, the company has not declared any dividend.

(ii) In the event of liquidation of the company, the preference share holders will have priority over equity shares in the payment of dividend and repayment of capital .

 

(e) There were no shares reserved at the year-end for issue under options and contracts / commitments for the sale of shares / disinvestment.

 

Shareholders holding more than 5% of the Shares in the Company :

 

Equity Shares

 

Name of Shareholders

No. of Shares

% of Holding

DEG-Deutsche Investitions-Und Entwicklungsgesellschaft Mbh

1,366,666

11.91

IDBI Trusteeship Services Limited (India Advantage Fund-VI)

1,292,231

11.26

Castleshine PTE Limited

1,000,000

8.71

Leadhaven PTE Limited

1,000,000

8.71

Western India Speciality Hospital Limited

975,000

8.50

Mr. Shailesh Bhandari

848,275

7.39

Mr. Mukesh Bhandari

809,500

7.05

 

Preference Shares

 

Name of Shareholders

No. of Shares

% of Holding

Web Businesses.com Global Limited

2,730,000

22.75

Lavish Packagers Limited

2,580,000

21.50

Highland Finance and Investments Private Limited

3,240,000

27.00

Froid Finance and Investments Private Limited

1,200,000

10.00

Ahmedabad Aviation And Aeronautics Limited

1,050,000

8.75

Mr. Shailesh Bhandari

1,200,000

10.00

 

The Company have calls in arrears / unpaid calls of Rs.Nil (Previous Year Nil)

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2014

(6 Months)

30.09.2013

(12 Months)

30.09.2012

(18 Months)

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

234.800

234.800

234.760

(b) Reserves & Surplus

(5966.900)

(2738.000)

(167.220)

(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)

(5732.100)

(2503.200)

67.540

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1471.200

2693.700

5019.900

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

51.700

53.700

75.530

Total Non-current Liabilities (3)

1522.900

2747.400

5095.430

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

29604.700

28530.000

25604.360

(b) Trade payables

1895.100

1996.200

2155.200

(c) Other current liabilities

1163.100

1010.700

1267.590

(d) Short-term provisions

34.900

42.500

42.540

Total Current Liabilities (4)

32697.800

31579.400

29069.690

 

 

 

 

TOTAL

28488.600

31823.600

34232.660

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

14124.600

14787.800

16197.470

(ii) Intangible Assets

16.200

18.200

17.560

(iii) Capital work-in-progress

104.500

111.400

95.850

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1273.900

1273.900

1223.950

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

236.400

202.500

227.650

(e) Other Non-current assets

322.900

332.700

292.720

Total Non-Current Assets

16078.500

16726.500

18055.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

4182.900

6509.300

6942.880

(c) Trade receivables

4060.200

3855.800

4459.350

(d) Cash and cash equivalents

304.600

282.900

440.620

(e) Short-term loans and advances

3854.000

4442.900

4313.840

(f) Other current assets

8.400

6.200

20.770

Total Current Assets

12410.100

15097.100

16177.460

 

 

 

 

TOTAL

28488.600

31823.600

34232.660

 

 

PROFIT & LOSS ACCOUNT

 

 

 

PARTICULARS

31.03.2014

(6 Months)

30.09.2013

(12 Months)

30.09.2012

(18 Months)

 

SALES

 

 

 

 

Income

6598.600

10540.200

22460.580

 

Other Income

23.400

64.000

258.020

 

TOTAL

6622.000

10604.200

22718.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

4870.400

7388.700

15188.920

 

Purchases of Stock-in-Trade

112.600

268.800

1388.220

 

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

1952.500

146.200

1606.560

 

Employees benefits expense

375.400

672.700

1215.130

 

Other expenses

1534.600

2262.300

4727.460

 

Preliminary Expenses Written Off

0.000

0.200

10.750

 

Exceptional items & Extraordinary Items

275.400

0.000

0.000

 

TOTAL

9120.900

10738.900

24137.040

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

(2498.900)

(134.700)

(1418.440)

 

 

 

 

 

Less

FINANCIAL EXPENSES

18.900

1015.500

4740.340

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(2517.800)

(1150.200)

(6158.780)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

693.900

1388.300

1991.820

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(3211.700)

(2538.500)

(8150.600)

 

 

 

 

 

Less

WEALTH TAX

0.200

0.300

0.230

 

 

 

 

 

Less

DEFERRED TAX

0.000

0.000

(865.120)

 

 

 

 

 

 

LOSS FOR THE YEAR/PERIOD

(3211.900)

(2538.800)

(7285.710)

 

 

 

 

 

Add/Lee

PRIOR PERIOD ADJUSTMENTS

(0.300)

0.100

6.820

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(3211.600)

(2538.900)

(7292.530)

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

(8249.200)

(5710.300)

1582.280

 

 

 

 

 

 

Balance Carried to the B/S

(11460.800)

(8249.200)

(5710.250)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Export of Goods & Services

855.500

1298.200

1389.63

 

TOTAL EARNINGS

855.500

1298.200

1389.630

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

494.700

772.500

3450.710

 

Stores

95.900

45.400

185.560

 

Capital Goods

0.000

0.000

108.470

 

TOTAL IMPORTS

590.600

817.900

3744.740

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 (1368.01)

(108.14)

(310.34)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

(6 Months)

30.09.2013 (12 Months)

30.09.2012 (18 Months)

PAT / Total Income

(%)

(48.50)

(23.94)

(32.10)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(48.67)

(24.08)

(36.29)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(11.85)

(8.34)

(24.76)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.56

1.01

(120.68)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

(5.42)

(12.47)

453.42

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.38

0.48

0.56

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

30.09.2012

(18 Months)

30.09.2013

(12 Months)

31.03.2014

(6 Months)

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

234.760

234.800

234.800

Reserves & Surplus

(167.220)

(2738.000)

(5966.900)

Net worth

67.540

(2503.200)

(5732.100)

 

 

 

 

long-term borrowings

5019.900

2693.700

1471.200

Short term borrowings

25604.360

28530.000

29604.700

Total borrowings

30624.260

31223.700

31075.900

Debt/Equity ratio

453.424

(12.474)

(5.421)

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

30.09.2012

(18 Months)

30.09.2013

 (12 Months)

31.03.2014

(6 Months)

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

22460.580

10540.200

6598.600

 

 

(53.072)

(37.396)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

30.09.2012

(18 Months)

30.09.2013

(12 Months)

31.03.2014

(6 Months)

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

22460.580

10540.200

6598.600

Profit

(7292.530)

(2538.900)

(3211.600)

 

(32.47%)

(24.09%)

(48.67%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

OPERATIONS

 

During the period of 6 months for the year ended on 31st March, 2014, the total revenue of the Company is Rs.6622.000 Millions. The Loss for the period of 6 months for the year ended on 31st March, 2014 is Rs.3211.600 Millions.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

OVERVIEW OF ECONOMY:

 

GLOBAL AND DOMESTIC SCENARIO:

 

The global economy began a modest recovery in the second half of the FY 2013-14 and ended on a more encouraging note than earlier years. The growth momentum is expected to strengthen further in the FY 2014-15. India‘s growth has slowed to just 4.7% in FY 2013-14, its second lowest in a decade primarily as a result of policy uncertainties and weak investor sentiments. India continued to face challenges on account of persistent inflation, fiscal imbalances and low investments resulting in a sluggish domestic demand growth. However, fiscal and monetary initiatives taken by the Indian Government and the Reserve Bank of India (RBI) helped in stabilizing the financial market conditions but the domestic macro-economic environment still remains challenging.

 

In FY 13 - 14, the overall industrial growth and more particularly infrastructure sector showed largely a downward trend. The key reason for poor performance was contraction in mining and deceleration in manufacturing. Slowdown in the construction resulted in underutilization of capacity in the steel and cement sectors. During the year, the rupee depreciated to an all-time low. Towards the end of the year, certain focused measures by the Government and RBI, helped to bring in some positive trends as rupee stabilized, exports increased, current account deficit declined and project clearances were fast-tracked.

 

The Company sees a positive trend for the steel industry as the new government’s focus is on implementing speedy reforms, nurture strong macroeconomic fundamentals and an improving investment scenario.

 

Engineering, Capital Equipment and Projects Division:

 

The Engineering division primarily supplies capital equipment to the steel industry and the Projects division of the company executes turnkey steel projects around the world up to the size of 0.5 million tons per annum. Thus, the growth of Engineering and Projects division is very closely linked to the fortunes of the steel industry. With the new government expected to focus on the infrastructure sector, the demand for the steel products will increase substantially over the next five years. New steel-making capacity is expected to be created to meet the demand forecasts of more than 200 million tons by 2020.

 

Given the long gestation period for setting up of green field steel capacities through the blast furnace route, induction based mini steel plants will continue to see a robust demand. The company has already started seeing an increased enquiry flow and a renewed interest by the customers in either expanding their capacities or setting up new capacities.

 

The company during the last 12 months period of April 2013 to March 2014 has seen an increased demand for its casters. The company has installed 26 number of casters in the last 12 months. While most new steel plants being set up are opting for caster for producing billets as against moulds for making ingots, they are also seeing a lot of existing players upgrading their facilities from ingot making to billet making. They expect the demand for the casters to substantially increase going forward.

 

The direct rolling of billets made viable because of the introduction of high speed modular caster (HSME) is fast becoming the industry norm. This has substantially brought down the cost of rolling through a huge saving in fule consumption and buring losses in the billet rehitting furnances.

 

The company has also introduced a high speed caster in larger size. The product is currently under commissioning and the company expects all large sized mini-steel plants to shift to this kind of caster once the first installation is up and running.

 

The company has also introduced state of the art pollution control systems for mini-steel plants. The product is gaining popularity and more and more existing steel plants are expected to upgrade and switch over to his new and technologically advanced pollution control system.

 

The company has increase its focus on new product development and plans to re-invest the sizeable amount into the continue RandD efforts introduce innovative product in the market. The company has also started seeing some good traction from its export markets.

 

Steel Division:

 

The demand for the steel products during the last year remained low. The prices of finished goods have also improved a bit over the last six to nine months on account of Rupee depreciation and resultant import protection. The company expects the demand to increase from the first quarter of the next calendar year. The raw material situation has eased on account of availability of iron ore pellets across the country.

 

The company has introduced 500D grade TMT through 100% iron ore route using blast furnace, sponge iron kiln,induction furnace and ladle refining furnace (LRF) for the first time in the country. This will allow the company to position itself strongly against the primary producers like Tata and SAIL.

 

The demand for super ductile and high strength TMT bars (500D BIS grade) is slowly increasing and the company expects to grab a substantial portion of the Gujarat market due to logistics advantage going forward.The company is also seeing an increased demand for LRF treated low alloy steel billets given the improvement in the automobile sector.

 

Ductile Iron Pipe Division:

 

The demand for DI pipes has remained strong in spite of the demand for overall steel products being weak during the past year. The company expects the demand for ductile iron pipes to further improve going forward. This should also result into increased pricing power for the company in a industry plagued with supply constraints (limited DI pipe makers in the country).

 

Electric Vehicle Division:

 

They are immensely proud to inform that in FY 2013-14 with more than 30% market share YO bykes has successfully continued its leadership position in the Electric Scooter Market in India. With more than 80% market share in High speed market YOEXL has emerged as the largest selling market in Indian EV category. This achievement is a reflection of the success of their vehicles, which truly offer customers a combination of the most advanced technology, latest innovative and elegant designs and protection against soaring petrol price and pollution.

 

At the beginning of FY 2013-14 they had set very challenging and strategic business targets in the area of Indigenization, In house manufacturing, Appointment of CandF etc. They are happy that they have successfully achieved the set goals like

 

 In-house supply of Power Train

 

They have started supply of Electronic components like Motor, Charger and Converters from in-house manufacturing facility at Ahmedabad. Controller is being out-sourced based on their design.

 

Battery Management System

 

BMS ensures proper equalization of all battery cells hence increases the battery life. This is a unique features and YObykes is the FIRST to introduce BMS in Electric Scooter Category in India.

 

C and F and C and A

During the year they successfully appointed 6 CandF agents and 5 Consignment agents. This has not only helped us to taxation issues but new arrangement has also enabled us to shorten the business process time - order to delivery.

 

Warranty Cost below 1%

Warranty burden dropped below 1% of vehicle cost, lowest since inception.

 

Consumer Finance Through Credit Cards :

 

Non-availability of Consumer Finance is one the key issues which their prospect customers face while buying YObykes. To address the issue and to push the sales they have recently launched a pilot where customer will be able to buy YObykes on EMI buying using credit card of any Nationalize or Private banks (14 banks covered under program). Pilot has been launched at Ahmedabad, Gujarat and depending upon the outcome same will be implemented at the other dealerships across India.

 

National Electric Mobility Mission Plan 2020 :

 

With the new and stable Govt. in centre, they are very optimistic that visionary National Electric Mobility Mission Plan 2020 will be launched very soon! National Electric Mobility Mission Plan 2020 (NEMMP 2020), is an initiative proposed by Ministry of Heavy Industry and Public Enterprises to promote and develop a self sustained Electric Vehicle industry in India, which can support national fuel security, provide affordable and environment-friendly transportation to the citizens of India. They firmly believe that with effective implementation of NEMPP 2020, India can emerge as Global Hub for Electric Vehicles. They are proud to inform that Mr Mukesh Bhandari, Chairman ELECTROTHERM (INDIA) LIMITED, has been appointed as “Chairman - SUB Group on BMS and Battery” under National Electric Mobility Mission Plan 2020.

 

At YO bykes with their credentials (Technologically advanced product, largest Customer Base and Network) they are in the best position to take the advantage of the opportunity which will be created by NEMMP 2020.

 

CORPORATE INFORMATION

 

Subject is a listed public company domiciled in India and incorporated under the provisions of the Companies Act, 1956.The Company is engaged in the Manufacturing of Electronic furnaces and other capital equipments, Sponge and PIG Iron, Ferrous and Non-ferrous Billets/Bars/Ingots, Duct Iron Pipes, Battery operated vehicles, Electric Power Generation and services relating to Electric furnaces, other capital equipments and battery operated vehicles.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(6 Months)

(Rs. in Millions)

30.09.2013

(12 Months)

(Rs. in Millions)

Long-term Borrowings

 

 

Foreign Currency Term Loan

0.000

100.000

Short-term borrowings

 

 

Loans and Advances repayable on demand from: -

 

 

Related Parties (Including Body Corporates)

25.400

25.900

Other Body Corporates

3.400

3.400

Directors

28.200

35.700

Term Loan from Banks

 

 

Rupee Term Loan

1765.900

1779.000

Foreign Currency Term Loan

201.300

233.100

Total

2024.200

2177.100

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10327606

29/12/2011

4,628,600,000.00

CENTRAL BANK OF INDIA

MID CORPORATE FINANCE BRANCH, CENTRAL BANK BUILDING , LAL DARWAJA, AHMEDABAD, GUJARAT - 380001, INDIA

B29228582

2

10317944

18/11/2011

2,000,000,000.00

INDIAN OVERSEAS BANK

ASHRAM ROAD BRANCH, SHARAD SHOPPING CENTRE, OPP. HANDLLOM HOUSE, ASHRAM ROAD, AHMEDABAD, GUJARAT -
380009, INDIA

B25413303

3

10317950

18/11/2011

1,000,000,000.00

INDIAN OVERSEAS BANK

ASHRAM ROAD BRANCH, SHARAD SHOPPING CENTRE, OPP.HANDLOOM HOUSE, ASHRAM ROAD,, AHMEDABAD, GUJARAT
- 380009, INDIA

B25415217

4

10321481

12/11/2011

2,784,700,000.00

CANARA BANK

PRIME CORPORATE BRANCH,104,JYOTI COMMERCIAL COMPLE, NEAR SHYAMAL CROSS ROAD,SATELITE, AHMEDABAD, GUJARAT - 380015, INDIA

B27073931

5

10323332

24/10/2011

1,810,000,000.00

BANK OF INDIA

AHMEDABAD LARGE CORPORATE BRANCH, 2ND FLOOR, BOI
BUILDING, BHADRA, AHMEDABAD, GUJARAT - 380001, INDIA

B27942994

6

10313190

19/10/2011

495,300,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B23532542

7

10318007

03/10/2011

540,000,000.00

DENA BANK

188A ASHRAM ROAD, DENA LAXMI BUILDING, AHMEDABAD, GUJARAT - 380009, INDIA

B25432139

8

10314943

29/09/2011

180,200,000.00

ORIENTAL BANK OF COMMERCE

"NEEL KAMAL",OPP SALES INDIA,ASHRAM ROAD, AHMEDABAD, AHMEDABAD, GUJARAT - 380009, INDIA

B24214470

9

10314939

28/09/2011

36,000,000.00

BANK OF BARODA

1ST FLOOR, BANK OF BARODA TOWERS, OPP LAW GARDEN,
ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA

B24213126

10

10307836

22/09/2011

1,000,000,000.00

INDIAN OVERSEAS BANK

ASHRAM ROAD BRANCH, SHARAD SHOPPING CENTRE,, OPP.
HANDLOOM HOUSE, ASHRAM ROAD,, AHMEDABAD, GUJARAT
- 380009, INDIA

B21281084

 

* Date of charge modification

 

FIXED ASSETS

 

TANGIBLE ASSETS

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Computer

·         Furnitures and Fixtures

·         Office Equipment

·         Vehicles

 

INTANGIBLE ASSETS

·         Software

 

CMT REPORT (Corruption, Money Laundering and 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.60.95

UK Pound

1

Rs.99.32

Euro

1

Rs.78.97

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

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 and 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.