MIRA INFORM REPORT

 

 

Report No. :

315926

Report Date :

04.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ZENITH BIRLA (INDIA) LIMITED

 

 

Registered Office :

1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point, Mumbai – 400 021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

05.08.1960

 

 

Com. Reg. No.:

11-011773

 

 

Capital Investment / Paid-up Capital :

Rs.1312.804 millions

 

 

CIN No.:

[Company Identification No.]

L29220MH1960PLC011773

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Seller of steel pipes which includes ERW pipes, hollow sections, pre-galvanized pipes and sections, and spirally welded pipes.

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1700000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

There seems drastic dip in the turnover of the company’s. The company has also incurred huge loss.

 

However, trade relations are fair. Business is active. Payments terms are reported to be slow but correct.

 

The company can be considered for business dealings with some cautions.

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

CARE

Rating

Long/ Short Term Bank Facilities: D

Rating Explanation

The company is in default or expected to be in default soon.

Date

June 26, 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 (91-22-66168400)

 

LOCATIONS

 

Registered Office :

1st Floor, Dalamal House, 206, J.B. Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-22821122/ 66168400/ 22821173

Mobile No.:

91-9702020708/ 9987095114 (Mr. KVS Kumar)

Fax No.:

91-22-22047835/ 67933111

E-Mail :

share@zeinthsteelpipes.com

suresh.shenoy@yashbirlagroup.com

For Export Enquiries: exports@zenithsteelpipes.com

For Domestic Enquiries: isc@zenithsteelpipes.com

For Spiral Pipe Enquiries: spiral@zenithsteelpipes.com

Website :

http://www.zenithsteelpipes.com

Area

10000 sq. ft.

Location

Owned

 

 

Corporate Office :

159, Industry House, 5th Floor, Churchgate Reclamation, Mumbai - 400 020, Maharashtra, India

Tel. No.:

91-22-22026340

Fax No.:

91-22-22047385

 

 

Factory 1 :

Khopoli Unit:

Taluka Khopali, District Raigad – 410 203, Maharashtra, India

Tel. No.:

91-2192-263321/22

Fax No.:

91-2192-262471

 

 

Factory 2 :

Murbad Unit:

Survey (Gut) No.440/441, Village Nhave, Taluka Murbad, District Thane, Maharashtra, India

 

 

Factory 3 :

Tarapur Unit:

G-38/39, Tarapur Industrial Area, Village Saravali, Taluka Palgar, District Thane – 401 506, Maharashtra, India

 

 

Factory 4 :

Kanchi Puram Unit

Survey No.99-3A to 3J, Padalam Sugar Mill Road, Village: Kalugar, Thogainmalai, Village Kolambakkam, Taluka Madhuranthagam, District Kanchipuram – 603 308, Tamilnadu, India

 

 

Factory 5 :

Trichy Unit

SH No.71, Survey No.782, Village Kalugar Thogainmalai, Taluka Kulithalai, District Karur – 639 120, Tamilnadu, India

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Yashovardhan Birla

Designation :

(Chairman) resigned w.e.f. 14.08.2014

 

 

Name :

Mr. Ashish Mahendrakar

Designation :

(Non Executive and Non-Independent Director) appointed as additional Director w.e.f 14.08.2014

 

 

Name :

Mr. Satish Jadhav

Designation :

(Independent Director) appointed as additional director w.e.f 14.08.2014

 

 

Name :

Mr. Augustine P. Kurias

Designation :

(Independent Director) resigned w.e.f. 28.11.2013

Date of Birth/ Age :

28.08.1932

Qualification :

M.A. (Eco), C.A.I.I.B

Date of Appointment :

27.10.1999

 

 

Name :

Mr. Pushkar M. Natu

Designation :

Executive and Non-Independent Director (appointed w.e.f. 24.07.2013)

Date of Birth/ Age :

12.11.1961

Qualification :

B.Com, M.B.A.

Expertise in specific functional area :

Shri Pushkar Natu, aged 51 years is a B.Com and M.B.A.,. He is having 17 years of experience in the field of marketing, export and general management.

Date of Appointment :

24.07.2013

 

 

Name :

Mr. Jignesh Bipin Mehta

Designation :

(Independent Director) resigned w.e.f. 14.08.2014

Date of Birth/ Age :

11.01.1967

Qualification :

B.com

Expertise in specific functional area :

Shri jignesh Mehta, aged 46 years is a B.Com by qualification. He is having 15 Years of experience in the field of Liaisoning with several departments in Central

Government and state Government.

Date of Appointment :

14.08.2013

 

 

Name :

Mr. P.V.R. Murthy

Designation :

(Non Executive & Non-Independent Director) resigned w.e.f.14.08.2013

 

 

Name :

Mr. Rubin Malkani

Designation :

(Independent Director) resigned w.e.f. 14.08.2014

 

 

Name :

Mr. Ameya Jagushte

Designation :

(Independent Director) appointed as additional director w.e.f 14.08.2014

 

 

KEY EXECUTIVES

 

Name :

Mr. Vimal Prakash Dubey

Designation :

Company Secretary and Compliance Officer (Appointed w.e.f. 18.06.2013)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholders

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

106018

0.08

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

12592255

9.59

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

12698273

9.67

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

 

 

Total shareholding of Promoter and Promoter Group (A)

12698273

9.67

(B) Public Shareholding

 

 

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

 

 

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

3665

0.00

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

4552179

3.47

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

17

0.00

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

4555861

3.47

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

 

 

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

15245163

11.61

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

26419594

20.12

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

70196213

53.47

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

2165344

1.65

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

223787

0.17

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

1248

0.00

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

1940309

1.48

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

114026314

86.86

Total Public shareholding (B)

118582175

90.33

Total (A)+(B)

131280448

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)

0

0.00

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

0

0.00

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

0

0.00

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

131280448

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Seller of steel pipes which includes ERW pipes, hollow sections, pre-galvanized pipes and sections, and spirally welded pipes.

 

 

Products :

ITC Code No.

Product Description

7306

Steel Pipes

8207

Tools

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the Management

 

 

Bankers :
  • State Bank of India
  • Punjab National Bank
  • Bank of Baroda
  • Oriental Bank of Commerce
  • Bank of India
  • Axis Bank
  • Shamrao Vittal Co-operative Bank
  • NKGSB Co-operative Bank
  • Bank of Maharashtra
  • The Federal Bank Limited

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

From Banks

139.379

18.161

From Others

48.657

143.225

Long term maturities of finance lease obligations

4.075

2.745

Short-term borrowings

 

 

From Banks

2102.627

1634.551

From Others

Foreign Currency Loans - Buyers Credit

0.000

124.643

Total

2294.738

1923.325

 

 

 

LONG TERM BORROWINGS

 

Terms of Borrowing:

(Rs. in millions)

Nature of Security

Original

Amount of

Borrowing

Tenor at

inception

(in years)

Terms of

Repayment

Month in

which last

Instalment

is due

Repayment

Schedule

Instalments

Balance

as on 31st March, 2014

 

Balance

as on 31st March, 2013

Prevailing

Interest

Rate Per

Annum

Secured

 

 

 

 

 

 

 

 

1 Term Loan from Bank is secured by mortgage of Thane Office Building against which the loan has been taken.

30.000

10

Monthly

Dec-14

0.115

16.216

19.901

15%

2 Loan from others is secured by First charge (hypothecation) of all movable assets, including Specific Plant and Machinery purchased out of this Term Loan with a second charge over

these assets to existing working capital bankers,

and Second Charge (hypothecation) on overall

existing movable and immovable assets including

Plant and Machinery.

562.500

8.5

Quarterly

Jul-15

15.300

228.955

230.248

3 Month Libor + 3.25%

3 The Term loan shall be secured by First  aripassu

charge on all assets funded under the

proposed capex plan and second charge on all

existing movable and immovable assets of the

company (excluding all movable assets charged to FMO on exclusive basis.)

112.500

8.5

Quarterly

Feb-19

5.113

123.165

00.00

16.25%

Long Term Maturities of Finance Lease

obligationsare secured by hypothecation of specific vehicles against which the loan has been

taken.

3.376

3-4

Monthly

June - 16

0.097

4.075

3.225

12.25%

Sub-Total

 

 

 

 

 

372.410

253.374

 

Less: Current Maturities of Long Term Debt

 

 

 

 

 

180.299

89.243

 

Total

 

 

 

 

 

192.111

164.131

 

 

SHORT TERM BORROWINGS

 

Loans repayable on demand from Banks are secured by hypothecation of inventories and /or book debts and export incentives recoverable etc. and collaterally secured by way of first charge on the fixed assets.

 

Foreign Currency Loan- Buyers Credit is secured by first charge on the assets purchased from the loan.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Thakur, Vaidyanath Aiyar and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiaries :
  • Zenith (USA) Inc.(Wholly owned)

 

 

Enterprises Owned or significantly influenced

by key management personnel or their relatives

where transactions have taken place:
  • Birla Bombay Private Limited
  • Shearson Investment and Trading Company Private Limited
  • Lakshmi Properties Limited
  • Birla Art Lifestyle Private Limited
  • Birla Wellness and Healthcare Private Limited
  • Asian Distributors Private Limited
  • Birla Surya Limited
  • Birla Precision Technologies Limited
  • Birla Power Solutions Limited
  • Ashok Birla Apollo Hospitals Private Limited
  • Birla Cotsyn (India) Limited
  • Birla Concepts(India) Limited
  • Godavari Corporation Private Limited
  • Birla Viking Travels Limited
  • Birla Shloka Edutech Limited
  • Birla Edutech Limited
  • Birla Electricals Private Limited
  • Birla Energy Infra Limited
  • Birla Global Corporate Private Limited
  • Birla Industries group Charity Trust
  • Birla Infrastructure Limited
  • Khopoli Investments Limited
  • Nirved Traders Private Limited
  • Birla International Private Limited
  • Birla Integrated Textile Park Limited
  • Birla Brothers Private Limited
  • Abhiram Steels Private Limited
  • Abhiram Hotels and Resorts Private Limited
  • Melstar Information Technologies Limited
  • Vijay Puraanjay Minerals Private Limited
  • Birla Kerala Vaidyashala Private Limited
  • Birla Life Styles Private Limited
  • Birla Pacific Medspa Limited
  • Birla Research and Life Sciences Limited
  • Birla Retail & Distributors Private Limited
  • Birla Terrajoule Private Limited
  • Birla Transasia Carpets Limited
  • Birla Urja Limited
  • Vedant Consultancy Private Limited
  • Zenith Dyeintermediates Limited
  • Birla Aircon Infrastructure Private Limited
  • Birla Capital & Financial Services Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

155500000

Equity Shares

Rs.10/- each

Rs.1555.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

131280448

Equity Shares

Rs.10/- each

Rs.1312.804 millions

 

 

 

 

 

The reconciliation of the number of shares outstanding is set out below:

 

Particulars

 

No. of Shares

Shares outstanding at the beginning of the year

131280448

Shares outstanding at the end of the year

131280448

 

The details of Shareholders holding more than 5% share:

 

Particulars

 

No. of Share

% held

Bank of New York Mellon

4125912

3.14

Focus Shares and Securities Private Limited

--

--

Shearson Investment Trading Company Private Limited

--

--

Godavari Corporation Private Limited

--

--

 

 

21620529

Equity Shares out of the Issued, Subscribed and Paid up Share capital were allotted as Bonus Share in the last five years by capitalisation of Securities Premium and Reserves.

13670315

Equity Shares out of the Issued, Subscribed and Paid up Share capital were allotted during the last five years pursuant to a scheme of amalgamation without payment being received in cash.

55917060

Equity Shares out of the Issued, Subscribed and Paid up Share capital were allotted in the last five years on conversion/exercise of warrants and against Global Depository Receipts.

 

On 10-01-2011 the Company issued 1,08,10,000 Convertible Equity Share Warrants which were convertible into 1 Equity Share of Rs.10 each at a price calculated in accordance with SEBI regulation. 25% of the issue price was payable at the time of allotment of warrants and the balance 75% at the time of allotment of Equity Shares. On 25- 03-2011, 15,60,000 warrants were converted into Equity Shares. The remaining 92,50,000 warrants were converttible into Equity Share before 09-07-2012. The Company has forfeited the amount of Rs.49.488 Million received against share warrants as the subscribers did not exercise the option by the due date.

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

1312.804

1312.804

1312.804

(b) Reserves & Surplus

(705.449)

1242.904

1689.918

(c) Money received against share warrants

0.000

49.488

49.488

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

607.355

2605.196

3052.210

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

272.779

283.942

474.130

(b) Deferred tax liabilities (Net)

50.487

50.486

50.486

(c) Other long term liabilities

79.292

91.273

89.992

(d) long-term provisions

137.542

96.126

97.075

Total Non-current Liabilities (3)

540.100

521.827

711.683

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2102.627

1759.420

877.225

(b) Trade payables

678.801

1476.716

1987.606

(c) Other current liabilities

776.678

655.726

341.848

(d) Short-term provisions

141.144

382.711

243.248

Total Current Liabilities (4)

3699.250

4274.573

3449.927

 

 

 

 

TOTAL

4846.705

7401.596

7213.820

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1034.740

1082.817

907.484

(ii) Intangible Assets

1.293

1.293

1.724

(iii) Capital work-in-progress

221.353

201.560

351.158

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

26.059

26.449

26.449

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

85.248

440.386

416.936

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1368.693

1752.505

1703.751

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

129.610

1096.335

1319.166

(c) Trade receivables

279.060

585.416

834.779

(d) Cash and cash equivalents

34.900

912.208

934.921

(e) Short-term loans and advances

3034.442

3055.132

2421.203

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

3478.012

5649.091

5510.069

 

 

 

 

TOTAL

4846.705

7401.596

7213.820

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

1437.482

2731.576

4613.643

 

Other Income

157.048

194.416

228.540

 

TOTAL

1594.530

2925.992

4842.183

 

 

 

 

 

 

EXPENSES

 

 

 

 

Cost of Materials Consumed

914.480

1514.988

2824.519

 

Purchases of Stock-in-Trade

323.475

896.859

797.636

 

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

719.564

79.440

104.130

 

Employees benefits expense

142.210

159.895

156.737

 

Other expenses

660.081

316.028

565.506

 

TOTAL

2759.810

2967.210

4448.528

 

 

 

 

 

 

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

(1165.280)

(41.218)

393.655

 

 

 

 

 

 

FINANCIAL EXPENSES

207.101

350.457

316.436

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION 

(1372.381)

(391.675)

77.219

 

 

 

 

 

 

DEPRECIATION/ AMORTISATION

65.160

54.883

50.817

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(1437.541)

(446.558)

26.402

 

 

 

 

 

 

TAX

0.117

0.356

11.031

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(1437.657)

(446.914)

15.371

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of exports

533.314

359.193

1518.801

 

TOTAL EARNINGS

533.314

359.193

1518.801

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Material (including Canalised items)

0.000

1.007

119.138

 

Spare Parts

0.000

34.342

0.368

 

TOTAL IMPORTS

0.000

35.349

119.506

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(15.20)

(3.40)

0.12

 

 

QUARTERLY RESULTS

 

Particulars  

30.06.2014

1st Quarter

30.09.2014

2nd Quarter

31.12.2014

3rd Quarter

Audited / UnAudited

UnAudited

UnAudited

UnAudited

Net Sales

140.900

226.900

57.500

Total Expenditure

392.600

439.400

161.500

PBIDT (Excl OI)

(251.700)

(212.500)

(104.000)

Other Income

0.000

0.000

0.000

Operating Profit

(251.700)

(212.500)

(104.000)

Interest

14.700

3.000

66.300

Exceptional Items

0.000

0.000

0.000

PBDT

(266.400)

(215.500)

(170.300)

Depreciation

29.100

(6.900)

26.700

Profit Before Tax

(295.500)

(208.600)

(197.000)

Tax

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

(295.500)

(208.600)

(197.000)

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

(295.500)

(208.600)

(197.000)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(100.01)

(16.36)

0.33

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

(81.06)

(1.51)

8.53

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(31.26)

(6.23)

0.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(2.37)

(0.17)

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

3.91

0.78

0.44

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.94

1.32

1.60

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

1312.804

1312.804

1312.804

Reserves & Surplus

1689.918

1242.904

(705.449)

Money received against share warrants

49.488

49.488

0.000

Net worth

3052.210

2605.196

607.355

 

 

 

 

long-term borrowings

474.130

283.942

272.779

Short term borrowings

877.225

1759.420

2102.627

Total borrowings

1351.355

2043.362

2375.406

Debt/Equity ratio

0.443

0.784

3.911

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

4613.643

2731.576

1437.482

 

 

(40.794)

(47.375)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

4613.643

2731.576

1437.482

Profit

15.371

(446.914)

(1437.657)

 

0.33%

(16.36%)

(100.01%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

FINANCIAL HIGHLIGHTS

 

During the year, the net income of the Company has reduced to Rs.1594.530 Million as compared to Rs.2925.992 Million of previous year due to decline in sales. Loss after Tax for the financial year stood at Rs.1997.945 Million as against the Loss of Rs.446.914 Million of previous year.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

 

GLOBAL ECONOMY

 

The Global economic environment continues to deteriorate in the second half of 2013 with concerns over fiscal sustainability in Europe and US Market. Overall global economy grew sluggish last year. Hardening credit constraints and risk aversion have transferred financial sector difficulties to the real economy for developing countries in general, with higher funding costs, sharply weakened capital flows. Global economic conditions still showing some uncertainty as to how markets will evolve over the medium term.

 

INDIAN ECONOMY

 

2012-13 was a difficult year for the Indian industry. Unfortunately, 2013-14 (FY2014) also continued to be poor in the backdrop of sub-5% real GDP growth for the second year in succession which has been the worst economic performance of this country in a long time. The slowdown is partly caused by structural problems (major infrastructural projects facing delays due to the lack of political stability, slowdown of inflow of foreign capital, delay in taking decision on coal and gas issues, mining and the telecom sectors),tighter macroeconomic policies, slow growth in the core OECD (Organization for Economic Co-operation and Development) countries.

 

INDUSTRY STRUCTURE

 

The pipe industry is an important part of manufacturing sector and is a major consumer of steel. The industry has benefited from economic growth and the increasing emphasis on infrastructure. The key economic driver for the industry includes water, infrastructure, oil and gas exploration, transportation and power industry.

 

Today, pipes are the most preferred mode of transport for liquids and gases globally as they are safe and economical. In comparison to rail and roads, they have lower operating cost per unit and also higher capacity. India has become the global pipe manufacturing hub primarily due to its lower cost, high quality and geographical advantages. Additionally, Indian companies have acquired global accreditations and certifications which make them preferred suppliers to most of the world’s top oil and gas companies in the Middle East, North America and Europe.

 

OUTLOOK:

 

Considering the business model the Company had pursued in the past for exports and domestic, the future model is being adjusted to overcome the threat of Anti-dumping and CVD imposed by the USA and the loss of business due to the same in USA.

 

More aggressive approach in domestic market supported by good domestic economic growth, backed by well established brand image, global reach and focused approach, the Company is hopeful that the demand for the Companies steel pipes will continue to grow in future.

 

Company is also aggressively pursuing the plan to move up in the value chain by diversifying/expanding into locations and additional product range. The Company is also in the process of further improvising its performance by achieving organic and inorganic growth.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Deferred payment Liabilities

15.000

15.000

Deposits

48.168

104.811

Loans and Advances from related parties

17.500

0.000

Short-term borrowings

 

 

Loans and Advances from related parties

0.000

0.226

Total

80.668

120.037

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10482642

19/07/2013

112,500,000.00

PUNJAB NATIONAL BANK

FORESHORE ROAD BRANCH, RAHEJA CHAMBERS, NARIMAN P
OINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B93286201

2

10393326

27/10/2012

2,650,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W
, MUMBAI, MAHARASHTRA - 400013, INDIA

B64655798

3

10367490

16/07/2012

2,080,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W
, MUMBAI, MAHARASHTRA - 400013, INDIA

B44503597

4

10355704

30/03/2012

173,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, WORLD TRADE CENTRE, CU
FFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B39624515

5

10327605

22/12/2011

300,000,000.00

SBI GLOBAL FACTORS LIMITED

6TH FLOOR, METROPOLITAN BUILDING, BANDRA-KURLA, C
OMPLEX, BANDRA(EAST), MUMBAI, MAHARASHTRA - 400051
, INDIA

B29228277

6

10211920

19/04/2010 *

509,500,000.00

NEDERLANSE FINANCIERINGS MAATSCAPPIJ VOOR ONTWIKKE
LINGSLADEN N. V.

ANNA VAN SAKSENLAAN 71, 2593 HW, THE HAGUE, THE N
ETERLANDS, - 93060, NETHERLANDS

A87206595

7

10166640

09/06/2009

400,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, WORLD TRADE CENTRE, CU
FFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

A65419335

8

10024696

23/05/2006 *

130,000,000.00

THE UTI BANK LTD.

ROYAL ACCORD-IV, LOKHANDWALA COMPLES, ANDHERI WES
T, MUMBAI, MAHARASHTRA - 400053, INDIA

A01179530

9

90241567

05/09/2005

130,000,000.00

UTI BANK LTD.

ROYAL ACCORD 4 LOKHANDWALA COMPLEX, ANDHERI WEST,
MUMBAI, MAHARASHTRA - 400053, INDIA

-

10

90241552

17/08/2005

92,500,000.00

THE SHAMRAO VITHAL CO-OP BANK LTD.

VAKOLA SANTACRUZ EAST, MUMBAI, MAHARASHTRA - 40005
5, INDIA

-

 

* Date of charge modification

 

 

UNAUDITED FINANCIAL RESULTS STANDALONE FOR THE QUARTER ENDED 30TH JUNE, 2014

 

(Rs. In Millions)

Particulars

Quarter Ended

( Unaudited)

 

30.06.2014

 

 

1. Income from operations

 

Sales/Income from operation

152.900

Less : Excise Duty

12.000

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

140.900

b) Other operating income

0.000

Total income from Operations(net)

140.900

2.Expenditure

 

a) Cost of material consumed

94.100

b) Purchases of stock in trade

6.600

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

26.100

d) Employees benefit expenses

11.400

e) Depreciation and amortization expenses

29.100

f) Other expenditure

254.400

Total expenses

421.700

3. Profit from operations before other income and financial costs

(280.800)

4. Other income

0.000

5. Profit from ordinary activities before finance costs

(280.800)

6. Finance costs

14.700

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

(295.500)

8. Exceptional item

0.000

9. Profit from ordinary activities before tax Expense:

(295.500)

10.Tax expenses

0.000

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

(295.500)

12.Extraordinary Items (net of tax expense)

0.000

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

(295.500)

14.Paid-up equity share capital (Nominal value Rs.10/- per share)

1312.800

15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

--

16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):

 

(a) Basic

(2.25)

(b) Diluted

(2.25)

 

Particulars

Quarter Ended

( Unaudited)

 

30.06.2014

A. Particulars of shareholding

 

1. Public Shareholding

 

- Number of shares

118582175

- Percentage of shareholding

90.33

2. Promoters and Promoters group Shareholding-

 

a) Pledged /Encumbered

 

Number of shares

2795000

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

22.01

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

2.13

 

 

b) Non  Encumbered

 

Number of shares

9903273

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

77.99

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

7.54

 

 

 

 

B. Investor Complaints

 

Pending at the beginning of the quarter

NIL

Receiving during the quarter

15

Disposed of during the quarter

15

Remaining unreserved at the end of the quarter

NIL

 

NOTE:

 

These results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on August 14, 2014.


In accordance with the requirements of Clause 41 of the Listing Agreement with the Stock Exchange, the Statutory Auditors have performed an audit of the standalone and consolidated financial results of the Company for year ended March 31, 2014.

The Company operates in a single segment namely Pipes and hence the segment information is not furnished in the above result.


The same accounting policies are followed in preparation of the financial statements as those followed in the most recent annual statements.


Previous year figures have been regrouped / recasted, wherever necessary.


The Shareholders of the Company at the Annual General Meeting held on September 17, 2012 approved variation in utilization of follow on public offer proceeds, so that Company can also utilize the proceeds for manufacturing of SAW and ERW pipes at Chennai or at such other location as may be decided by Board. Out of Rs. 1350.000 Million, Rs. 803.600 Million will be utilized from the unutilized proceeds of public issue and balance Rs. 546.400 Million will be from unutilized proceeds of GDR issue.

Rs IN Million

Particulars

Projected Amount

Amount to be spent

Land and Building

0.001

0.001

Plant and Machinery (Imported and Indigenous)

0.009

0.008

Miscellaneous Fixed Assets

0.004

0.004

Contingency

0.000

0.000

Balance Amount to be spent

0.014

0.013

 

The company has declared a lockout of its khopoli unit in November, 2013.


Consortiun of banks led by state bank of India has taken action under Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 in February 2014 and called upon the company to repay the amount of RS .1931.900 Million towards the dues as on 31.01.2014,within 60 days. Thereafter the consortium of banks have taken symbolic possession on 29.05.2014 of the immovable assets at the khopoli unit.

Debit balance aggregating Rs. 219.000 Million, considered unrealisable have been written off as a prudent measure.

 

FIXED ASSETS

 

TANGIBLE ASSETS

 

  • Freehold Land
  • Leasehold Land
  • Buildings
  • Plant and Equipment
  • Furniture, Fixtures
  • Vehicles
  • Office Equipments
  • Computer

 

INTANGIBLE ASSETS

 

  • Computer Software

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, 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.62.59

UK Pound

1

Rs.92.46

Euro

1

Rs.67.51

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

KVT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILITY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

26

 

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.