MIRA INFORM REPORT

 

 

Report No. :

316897

Report Date :

11.04.2015

 

IDENTIFICATION DETAILS

 

Name :

STEELCO GUJARAT LIMITED

 

 

Registered Office :

Plot No. 2, G.I.D.C, Estate Palej, District Bharuch – 392 220, Gujarat

Tel No.:

91-2642-277479

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

09.01.1989

 

 

Com. Reg. No.:

04-011748

 

 

Capital Investment / Paid-up Capital :

Rs.788.680 Million

 

 

CIN No.:

[Company Identification No.]

L27110GJ1989PLC011748

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Steel Products.

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (14)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and Delayed

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having moderate track record.

 

The rating is constrained on account of company’s weak financial risk profile marked by moderate operational performance and huge accumulated losses incurred by the company.

 

Rating further constrained on account of debt restructuring of company due to poor financial background.

 

Business is active. Payments are reported to be slow and delayed.

 

The company can be considered for business dealings on safe and secured 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 – 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

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under :

 

Suit-filed accounts of Rs. 10.000 Million and above as on 11-Aprril-2015

Search details

Borrower Containing - steelco 

 

Bank

 

Branch

 

Quarter

 

D&B D-U-N-S® Number

 

Borrower Name

OutStanding Amount Rs. IN Million

ICI BANK LIMITED

MUMBAI

31-03-02

 

STEELCO GUJARAT LIMITED

258.600

ICICI BANK LIMITED

MUMBAI

30-06-02

 

STEELCO GUJARAT LIMITED

258.600

ICICI BANK LIMITED

MUMBAI

30-09-02

 

STEELCO GUJARAT LIMITED

258.600

ICICI BANK LIMITED

MUMBAI

31-03-03

 

STEELCO GUJARAT LIMITED

195.800

ICICI BANK LIMITED

MUMBAI

30-06-03

 

STEELCO GUJARAT LIMITED

195.800

ICICI BANK LIMITED

MUMBAI

30-09-03

 

STEELCO GUJARAT LIMITED

195.800

ICICI BANK LIMITED

MUMBAI

31-12-03

 

STEELCO GUJARAT LIMITED

195.800

ICICI BANK LIMITED

MUMBAI

31-03-04

 

STEELCO GUJARAT LIMITED

131.400

ICICI BANK LIMITED

MUMBAI

30-06-04

 

STEELCO GUJARAT LIMITED

131.400

ICICI BANK LIMITED

MUMBAI

30-09-04

 

STEELCO GUJARAT LIMITED

131.400

ICICI BANK LIMITED

MUMBAI

31-12-04

 

STEELCO GUJARAT LIMITED

131.400

ICICI BANK LIMITED

MUMBAI

31-03-05

 

STEELCO GUJARAT LIMITED

65.700

ICICI BANK LIMITED

MUMBAI

30-06-05

 

STEELCO GUJARAT LIMITED

65.700

ICICI BANK LIMITED

MUMBAI

30-09-05

 

STEELCO GUJARAT LIMITED

65.700

ICICI BANK LIMITED

MUMBAI

31-12-05

 

STEELCO GUJARAT LIMITED

65.700

INDIAN BANK

IFB, MUMBAI

31-03-03

 

STEELCO GUJARAT LIMITED

17.600

INDIAN BANK

IFB, MUMBAI

30-06-03

 

STEELCO GUJARAT LIMITED

17.600

INDIAN BANK

IFB, MUMBAI

30-09-03

 

STEELCO GUJARAT LIMITED

17.600

INDIAN BANK

IFB, MUMBAI

31-12-03

 

STEELCO GUJARAT LIMITED

17.600

INDIAN BANK

INDUSTRIAL FINANCE

31-03-02

 

STEELCO GUJARAT LIMITED

19.000

INDIAN BANK

INDUSTRIAL FINANCE

30-06-02

 

STEELCO GUJARAT LIMITED

19.000

INDIAN BANK

INDUSTRIAL FINANCE

30-09-02

 

STEELCO GUJARAT LIMITED

19.000

INDIAN BANK

INDUSTRIAL FINANCE

31-12-02

 

STEELCO GUJARAT LIMITED

19.000

 

 

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 (91-2642-277480)

 

LOCATIONS

 

Registered Office /Factory/ Head Office :

Plot No. 2, G.I.D.C, Estatel, Palej, District Bharuch – 392 220, Gujarat, India

Tel. No.:

91-2642-277479 / 480 / 481

Fax No.:

91-2642-277307

E-Mail :

sales@steelcogujarat.com

secretarial@steelcogujarat.com

shares@steelcogujarat.com

Website :

http://www.steelcogujarat.com

 

 

Branch Office:

4th Floor, Marble Arch Race Course Circle, Vadodara – 390007, Gujarat, India

Tel. No.:

91-265-2333484, 2336407,2327968

Fax No.:

91-265-2333483

E-Mail :

sglbrd@dataone.in

 

 

Branches :

Located at:

 

·         New Delhi

·         Mumbai

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. N M Mohnot

Designation :

Managing Director (upto 14-08-2014)

Qualification :

B.Sc., C.A.

 

 

Name :

Dr. R. S. Mamak

Designation :

Executive Vice Chairman (w.e.f. 14-08-2014)

 

 

Name :

Mr. R P Chandaria

Designation :

Director (upto 13-10-2013)

 

 

Name :

Ms. Rashmi Chandaria

Designation :

Director

Experience :

 

Name :

Mr. J. Mehra

Designation :

Director

 

 

Name :

Mr. Mahendra Lodha

Designation :

Director

 

 

Name :

Mr. Vimal Chandaria

Designation :

Additional Director (w.e.f. 15-11-2013)

 

 

Name :

Mr. Jiban Goswami

Designation :

Nominee Director (w.e.f.16-08-2013)

 

 

Name :

Mr. S. S. Ranjan

Designation :

Director (w.e.f. 22-05-2013)

 

 

KEY EXECUTIVES

 

Name :

Mr. Sunil Singhvi

Designation :

JT. General Manager Finance

 

 

Name :

Mr. Arvind Tambi

Designation :

Financial Controller and Assistant Company secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Names 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.gif(2) Foreign

 

 

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

31921366

75.00

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

31921366

75.00

Total shareholding of Promoter and Promoter Group (A)

31921366

75.00

(B) Public Shareholding

 

 

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

 

 

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

19290

0.05

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

625642

1.47

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

644932

1.52

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

 

 

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

843738

1.98

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

6027837

14.16

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

2787053

6.55

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

336896

0.79

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

236377

0.56

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

96994

0.23

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

3525

0.01

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

9995524

23.48

Total Public shareholding (B)

10640456

25.00

Total (A)+(B)

42561822

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)

42561822

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Steel Products.

 

 

Product :

Item code No. (ITC Code)

Production Description

720918

Cold Rolled Steel

721230

Galvani C.R. Steel

 

 

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
  • Bank of India
  • Canara Bank
  • State Bank of Mysore
  • State Bank of Travancore
  • State Bank of Hyderabad
  • The Federal Bank Limited

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Term Loans from Banks:

Term Loan

417.350

383.211

Short-term borrowings

 

 

Working Capital Loans from Banks [Secured] [*]

656.105

549.173

Total

1073.455

932.384

Note:

 

LONG-TERM BORROWINGS

 

Securities and Terms of Repayment for Secured Long Term Borrowings:

 

Rupee Term Loans:

 

Rupee Term Loan of Rs. 468.799 Million is secured by way of joint mortgage of immovable properties of the company situated at Plot No.2, GIDC Estate, Palej, District Bahruch, Gujarat (India) both present and future, and by way of hypothecation of whole of immovable property of the Company, including plant and machinery and other movables, both present and future (Save and except inventories and book debts) whether installed or not, or in the course of transit by way of first charge to the lenders subject to the first charge on specified movable assets created in favour of banks providing Working capital finance) to rank on “pari-passu basis.

 

The secured borrowings are further secured by way of pledge of 3,33,08,398 Equity Shares held by the promoters in favour of the Consortium of Bankers and corporate guarantee of Spica Business Corp., Panama, the holding company of Spica Investments Limited, Mauritius.

 

The loans are rescheduled in terms of Corporate Debts Restructuring Scheme as is appoved by the Corporate Debt Restructuring Cell vide its apporval letter dtd June 27, 2012. Accordingly the loans are now repayable in stepped-up quarterly 30 instalments commencing from December 2013 as detailed hereunder.

 

Sr. No.

Financial year

% of Principal

1

2013-14

5%

2

2014-15

10%

3

2015-16

10%

4

2016-17

15%

5

2017-18

15%

6

2018-19

15%

7

2019-20

15%

8

2020-21

15%

 

Rate of Interest is linked to SBI PLR Rate + 1%. Presently 10% (SBI PLR) + 1% = 11%

 

 Default in repayment of monthly Interest and Term Loan Instalments:

 

During the year the company has made delays in payment of interest on long term borrowings in the range of 1 to 60 days. Interest accrued & due as at 31st March 2014 has been paid subsequent to the date of financial statement. During the year the company has made delays in repayment of principal value of long term borrowings in the range of 2 to 64 days. Moreover, the company has not paid instalment of Rs. 3.054 Million which was due on 31- 03-2014 till the date of financial statement which have been paid subsequent to the date of financial statement.

 

Terms of Repayment for Unsecured Long Term Borrowings:

 

Finance obligations of Rs. 5.207 Million is taken against Hypothecation of respective vehicles and it is repayable as per the repayment schedule ranging

36 to 48 equal monthly instalments alongwith interest for the year. The outstanding amount as at 31st March 2014 is Rs. 1.600 Million. [As at 31-03-2013: Rs. 3.001 Million]. There is no default by the company in repayment of such loan during the year.

 

SHORT-TERM BORROWINGS

 

Working Loan comprising Cash Credit(CC), Packing Credit Foreign Currency(PCFC), Export Packing Credit (EPC), Bills discounted and Demand Loan (DL) is repayable on demand from Banks, are secured by way of hypothecation of the Company’s entire current assets including stock of goods, including raw material, work-in-process, finished goods, stores, consumables, spares, goods in transit etc. and book-debts,both present and future, to rank on “pari-passu” basis. These facilities are also secured by way of first charge over the entire fixed assets including Equitable mortgate over leasehold right over the factory land of the Company situated at Plot No.2, GIDC estate, Palej, Dist. Bharuch, Gujarat (India) both present and future. Interest for borrowing in Indian Currency through CC, EPC and DL is is 11% p.a. and for borrowing in foreign currency through PCFC is in the range of Libor + 2.25% p.a. to Libor + 2.50% p.a.

 

The secured borrowings are further secured by way of pledge of 3,33,08,398 Equity Shares held by the promoters in favour of the Consortium of Bankers.

During the year the company has drawn the working capital financing facility in excess of sanctioned limits. As at March 31, 2014, total overdrawn amount is Rs. 111.068 Million, which have been paid subsequent to the date of financial statement.

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

Mukesh M. Shah and Company

Chartered Accountants

Address :

Ahmadabad, Gujarat, India

 

 

Internal Auditor:

 

 

 

Name  :

Deloitte Haskins and Selles

Chartered Accountants

Address :

Vododara, Gujarat, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company of Spica Investments Limited:
  • Spica Business Corp., Panama

 

 

Holding Company:
  • Spica Investments Limited,Mauritius

 

 

Enterprises significantly influenced by Directors and/or their relatives:
  • Disha Infin Advisor Private Limited
  • Ignis International Industries Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

75000000

Equity Shares

Rs. 10/- each

Rs.750.000 Million

75000000

Preference Shares

Rs. 10/- each

Rs.750.000 Million

 

 

 

 

 

Total

 

Rs.1500.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

42561822

Equity Shares

Rs. 10/- each

Rs.425.618 Million

32820000

Cumulative Redeemable Preference Shares

Rs. 10/- each

Rs.328.200 Million

3486200

7.00% Cumulative Redeemable Non-Convertible Preference

Shares

Rs. 10/- each

Rs.34.862 Million

 

 

 

 

 

Total

 

Rs.788.680 Million

 

a)     The reconciliation of the number of Shares outstanding is as under:

 

Equity Shares

Equity Shares

Preference Shares

Number of shares at the beginning

42561822

32820000

Add: Bonus shares issued during the year/shares issued during the year

-

3486200

Number of shares at the end

42561822

36306200

 

The equity shares rank parri passu and carry equal rights with respect to voting and dividend.

 

In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

 

12.50% Cumulative Redeemable Non-Convertible Preference Shares are redeemable after a period of 18 years from the date of its issues i.e. 29-09-2008.

 

The said shares do not carry any voting rights nor do they participate in the profits of the Company, except that they carry preferential right in respect of cumulative arrears of unpaid dividend. In the event of liquidation of the Company, the preference shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all other preferential amounts but before distribution to the equity shareholders.

 

7.00 % Cumulative Redeemable Non-Convertible Preference Shares are redeemable after a period of 15 years from the date of its issues i.e.21-02-2014.

 

The said shares do not carry any voting rights nor do they participate in the profits of the Company, except that they carry preferential right in respect of cumulative arrears of unpaid dividend. In the event of liquidation of the Company, the preference shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all other preferential amounts but before distribution to the equity shareholders.

 

Details of Share Holders holding more than 5% of Share Capital :

 

Spica Investments Limited (Holding Company), Mauritius, which is a subsidiary of Spica Business Corp.,         Panama.

 

Name of Shareholder

Number of Shares

Number of Equity Shares

33308398

% to total share holding

78.26%

Number of Preference Shares

32820000

% to total share holding

100.00%

 

 

f) Equity shares allotted without payment being received in cash

Nil

 

 

g) Preference shares allotted without payment being received in cash

Nil

 

 

h) Equity Shares allotted as fully paid up shares by way of Bonus Shares

Nil

 

 

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

788.680

753.695

753.695

(b) Reserves & Surplus

(3.888)

90.228

148.439

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

34.864

0.000

Total Shareholders’ Funds (1) + (2)

784.792

878.787

902.134

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

437.883

404.811

31.890

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.545

1.610

1.779

(d) long-term provisions

23.319

20.669

20.548

Total Non-current Liabilities (3)

461.747

427.090

54.217

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

656.105

549.173

604.566

(b) Trade payables

1427.556

1272.467

1623.150

(c) Other current liabilities

128.881

114.588

145.027

(d) Short-term provisions

12.828

12.559

12.528

Total Current Liabilities (4)

2225.370

1948.787

2385.271

 

 

 

 

TOTAL

3471.909

3254.664

3341.622

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1155.497

1250.514

1345.748

(ii) Intangible Assets

0.841

0.621

0.480

(iii) Capital work-in-progress

10.498

9.260

18.412

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

123.037

106.882

97.209

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1289.873

1367.277

1461.849

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

885.533

655.055

859.598

(c) Trade receivables

776.034

810.447

640.149

(d) Cash and cash equivalents

85.905

63.070

91.657

(e) Short-term loans and advances

218.841

186.372

130.503

(f) Other current assets

215.723

172.443

157.866

Total Current Assets

2182.036

1887.387

1879.773

 

 

 

 

TOTAL

3471.909

3254.664

3341.622

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

5259.357

5415.145

4698.011

 

Other Income

36.862

32.311

14.122

 

TOTAL (A)

5296.219

5447.456

4712.133

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

4176.188

4246.784

3653.328

 

Purchase of traded goods

59.780

0.000

0.000

 

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

(84.097)

(1.915)

78.858

 

Employees benefits expense

118.643

109.166

109.977

 

Other expenses

822.027

842.285

796.354

 

TOTAL (B)

5092.541

5196.320

4638.517

 

 

 

 

 

Less

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

203.678

251.136

73.616

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

196.376

202.133

236.377

 

 

 

 

 

 

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

7.302

49.003

(162.761)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

44.472

47.300

124.298

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

(37.170)

1.703

(287.059)

 

 

 

 

 

Less

TAX (I)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-I)   (J)

(37.170)

1.703

(287.059)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Export Earnings on FOB Basis

2416.019

2619.180

2589.732

 

TOTAL EARNINGS

2416.019

2619.180

2589.732

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

383.816

619.995

1119.965

 

Components and Stores parts

20.215

12.682

24.911

 

TOTAL IMPORTS

404.031

632.677

1144.876

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1.84)

(0.92)

(7.71)

 

 

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

1212.200

1198.800

1761.300

Total Expenditure

1208.200

1191.000

168.700

PBIDT (Excl OI)

4.000

7.800

62.600

Other Income

8.000

3.000

12.500

Operating Profit

11.900

10.800

75.100

Interest

49.400

54.400

54.500

Exceptional Items

0.000

0.000

0.000

PBDT

(37.400)

(43.600)

20.600

Depreciation

25.100

25.400

25.700

Profit Before Tax

(62.500)

(69.000)

(5.000)

Tax

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

(62.500)

(69.000)

(5.000)

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

(62.500)

(69.000)

(5.000)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(0.71)

0.03

(6.11)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

3.87

4.64

1.57

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(1.07)

0.05

(8.64)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.05)

0.00

(0.32)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.39

1.09

0.71

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.98

0.97

0.79

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

753.695

753.695

788.680

Reserves & Surplus

148.439

90.228

(3.888)

 Share Application money pending allotment

0.000

34.864

0.000

Net worth

902.134

878.787

784.792

 

 

 

 

long-term borrowings

31.890

404.811

437.883

Short term borrowings

604.566

549.173

656.105

Total borrowings

636.456

953.984

1093.988

Debt/Equity ratio

0.706

1.086

1.394

 

 

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

4698.011

5415.145

5259.357

 

 

15.265

(2.877)

 

 

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

4698.011

5415.145

5259.357

Profit

(287.059)

1.703

(37.170)

 

(6.11%)

0.03%

(0.71%)

 

 

 

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

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

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

 

LITIGATION DETAILS

 

HIGH COURT OF GUJARAT

TAX APPEAL No. 331 of 2009

 

Status : PENDING

( Converted from : ST/391/2009 )

CCIN No : 001092200900331

 

Last Listing Date:

03/03/2010

Coram

·         HONOURABLE MR.JUSTICE D.A.MEHTA

·         HONOURABLE MS.JUSTICE HARSHA DEVANI

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER-CENTRAL EXCISE & CUSTOMS VADODARA-II

MR GAURANG H BHATT for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

S.NO.

Name of the Respondant

Advocate On Record

1

STEELCO GUJARAT LIMITED

MR ANAND NAINAWATI for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

 

Presented On

: 06/02/2009

Registered On

: 06/02/2009

Bench Category

: DIVISION BENCH

District

: BHARUCH

Case Originated From

: THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 127 times

StageName

: FOR FINAL HEARING - TAX MATTERS

 

Act
  • CENTRAL EXCISES AND SALT ACT, 1944

 

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

06/02/2009

CERTIFIED COPY

MR GAURANG H BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

6

MR GAURANG H BHATT:1

2

06/02/2009

MEMO OF PETITION/APPEAL/SUIT

MR GAURANG H BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

50

MR GAURANG H BHATT:1

3

15/08/2009

VAKALATNAMA

MR BL NARASIMHAN ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

-

MR BL NARASIMHAN:1

4

24/03/2015

VAKALATNAMA

MR ANAND NAINAWATI ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

5

MR ANAND NAINAWATI(5970) for R:1

Court Proceedings

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

03/03/2010

8

-

FOR FINAL HEARING - TAX MATTERS

RULE/ADMIT

·         HONOURABLE MR.JUSTICE D.A.MEHTA

·         HONOURABLE MS.JUSTICE HARSHA DEVANI

Available Orders

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

TAX APPEAL/312/1999

·         HONOURABLE MR.JUSTICE K.A.PUJ

·         HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

30/11/2009

N

ORDER

-

Y

2

TAX APPEAL/331/2009

·         HONOURABLE MR.JUSTICE D.A.MEHTA

·         HONOURABLE MS.JUSTICE HARSHA DEVANI

10/03/2010

N

ORDER

-

Y

 

REVIEW OF OPERATIONS

 

During the year, the Company has made a net loss of Rs. 37.200 Million on turnover of 82,176MT Valuing Rs. 5296.200 Million against a net profit of Rs. 1.700 Million on turnover of 88,901 MT valuing Rs. 5447.500 Million in the previous year. The Company has made a Cash Profit of Rs. 7.300 Million for the year ended 31st March 2014 as against a Cash profit of Rs. 49.000 Million in the previous year. This can be mainly attributed to lower capacity utilization by 8% in terms of quantity and 3% in terms of Value due to erratic supply of H.R. Steel coils from its main supplier and non compatibility of material arranged from alternate sources.

 

MANAGEMENT DISCUSSION ANDANALYSIS REPORT

 

INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES ANDOUTLOOK

 

International demand of steel products has grown by 2.9% during the year 2013-14, mainly on account of improvement in US economy and quick address of Euro crisis. However slow growth in Brazil, India and China did not lead to much improvement in utilization of steel capacity World over.

 

Stagnation of Indian economy including steel sector during the last two years for the various reasons has not given much impetus to the growth of Steel Sector and its consumption in India.

 

In 2014-15 with more stable Government at centre, the steel demand is expected to accelerate further in view of various expected reform measures.

 

Infrastructure development of the country coupled with high targeted spending in core sector as indicated by the new Government will boost the economy and accelerate the domestic demand of steel. The development of ports and infrastructural of roads and bridges are expected to accelerate steel demand and the company is also poised to take benefit of the same.

 

FINANCIAL PERFORMANCEWITH RESPECT TOOPERATIONAL PERFORMANCE

 

The Company has made net loss of Rs. 37.200 Million on turnover of 82176 MT valuing Rs. 5296.200 Million against net profit of Rs. 1.700 Million on turnover of 88,901 MT. Valuing Rs. 5447.500 Million in the previous year.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Finance Lease obligations

From Banks

0.533

1.600

From Others [Unsecured] / Inter corporate deposits

20.000

20.000

Total

20.533

21.600

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10149742

22/10/2012 *

2,537,200,000.00

STATE BANK OF INDIA LEAD BANK

MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MA
RBLE ARCH, RACE COURSE CIRCLE,, VADODARA, GUJARAT
- 390007, INDIA

B61603825

2

10107812

08/10/2012 *

2,537,200,000.00

STATE BANK OF INDIA LEAD BANK

MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MA
RBLE ARCH, RACE COURSE CIRCLE,, VADODARA, GUJARAT
- 390007, INDIA

B60737194

3

80027724

11/01/2003

54,000,000.00

COLLECTOR OF ELECTRICITY

O/O C.E. ELECTRICAL INSPECTOR & COLLECTOR OF ELEC-
, BLOCK NO.18, 6TH FLOOR, UDYOD BHAVAN, GANDHINAG
AR, GUJARAT - 382017, INDIA

-

4

80027723

11/01/2003

250,000,000.00

STATE BANK OF INDIA

IF BRANCH, RACE COURSE CIRCLE,, BARODA, GUJARAT -
390007, INDIA

-

 

* Date of charge modification

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

PARTICULARS

31.03.2014

31.03.2013

 

 

 

In respect of guarantees given by Banks and/or counter guarantees given by the Company

20.025

18.000

Other money for which the company is contingent liable:

 

 

In respect of the demands raised by the Central Excise, State Excise & Service Tax Authority

52.529

36.228

In respect of Income Tax matters pending before appellate authorities which the Company expects to succeed, based on decisions of Tribunals/Courts.

71.604

26.259

Letters of Credit

29.204

29.204

Dividend on Cumulative Preference Shares

226.067

184.781

Interest on Electricity Duty Deferment Loan

8.318

8.318

Labour Matters

5.000

5.000

Total

412.747

307.790

Note:

 

Central Board of excise and custom (“CBEC”) vide its office memorandum dated 22nd February 2011 has clarified that where the cenvat credit is availed in respect of goods exported under the duty free import authorisation(“DFIA”). such credit even if the said credit without being utilised is reversed or paid back along with

Interest after the goods are cleared for export, it will be treated as if such credit is availed by the assessee. Being agrieved by issue of such memorandum in respect of benefits claimed by the company on DFIA, the company has filed a writ petition Mumbai High Court challenging them emorandum issued by CBEC, which is decided in favour the company, based on the facts of the case and prevalent legal position and Foreign Trade Policy. However, central excise department has filed special leave petition in the supreme court challenging the above decision of the Bombay High Court, which has been admitted by Hon'ble Supreme Court. The Company has been advised by its legal advisors that the stand of the excise department is not tenable, hence there would not be any financial liabilities arising on the Company.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2014

(Rs. In Million)

Particulars

Quarter ended

9 Months Ended

 

31.12.2014

30.09.2014

31.12.2014

1. Income form operations

 

 

 

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

1697.820

1169.043

4042.479

b) Other operating income

63.437

29.726

129.734

Total income from Operations(net)

1561.257

1198.769

4172.213

2.Expenditure

 

 

 

a) Cost of material consumed

1376.125

989.631

3193.530

b) Purchases of stock in trade

0.000

0.000

0.000

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

7.831

(37.115)

123.685

d) Employees benefit expenses

38.906

33.420

105.245

e) Depreciation and amortization expenses

25.655

25.407

76.121

f) Other expenditure

275.801

205.062

675.422

Total expenses

1724.318

1216.405

4174.003

Profit / (Loss) from Operations before other Income, Finance Cost and Exceptional Items (1-2)

38.930

(17.634)

(1.790)

Other Income

12.538

3.005

23.505

Profit / (Loss) from Ordinary Activities before finance cost and exceptional items (3+4)

49.477

(14.629)

21.715

Finance cost

54.497

54.378

158.233

Profit / (Loss) from Ordinary Activities after finance cost but before exceptional items (5-6)

(5.020)

(69.007)

(136.518)

Exceptional items - Gain / (Loss) - Refer note no 2

0.000

0.000

0.000

Profit /(Loss) from Ordinary Activities before tax (7+8)

(5.020)

(69.007)

(136.518)

Tax expense

0.000

0.000

0.000

Net profit / (Loss) from Ordinary Activities after tax (9-10)

(5.020)

(69.007)

(136.518)

Extraordinary items

0.000

0.000

0.000

Net profit / (Loss) for the period (11-12)

(5.020)

(69.007)

(136.518)

Paid-up Equity Share Capital (face value of Rs.10/- each)

425.618

425.618

425.818

Reserves excluding revaluation reserve as per balance sheet of previous accounting year

0.00

0.00

0.00

Earning per share (EPS)

 

 

 

a) - Basic EPS before and after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)

(0.37)

(1.88)

(3.97)

b) - Diluted EPS before and after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized) (*)

(0.37)

(1.88)

(3.97)

 

(Rs. In Million)

A. Particulars of shareholding

 

 

 

1. Public Shareholding

 

 

 

- Number of shares

10640456

10640456

10640456

- Percentage of shareholding

25.00

25.00

25.00

2. Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

31921366

31921366

31921366

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

100.00

100.00

100.00

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

75.00

75.00

75.00

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

0

0

0

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

0

0

0

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

0

0

0

 

B. Investor Complaints

31.12.2014

Pending at the beginning of the quarter

0.00

Receiving during the quarter

2.00

Disposed of during the quarter

2.00

Remaining unreserved at the end of the quarter

0.00

 

NOTE:

 

The Company has only one manufacturing unit at Palej to produce steel products i.e. cold rolled and galvanized steel and hence there is only a single segment in terms of Accounting Standard on Segment Reporting (AS-17) issued by ICAI applicable w.e.f. April 01, 2001.


The above financial results were reviewed by the Audit Committee and have been taken on record by the Board of Directors at its meeting held on 12th February, 2015.


The figures of previous period/year have been regrouped and reclassified wherever necessary to conform to current period presentation.


Basic & Diluted EPS has been arrived at after considering dividend payable on Preference share Capital.


Effective from April 1, 2014, as per the Companies Act, 2013 the depreciation has to be provided over the remaining useful lives of the assets as per the requirement of Schedule II of the Companies Act, 2013. However in respect of certain assets depreciation has been provided as per useful lives as assessed by independent technical valuers and assessors as per their Valuation report in March 2011. Hitherto, Depreciation on revalued assets to the extent of difference of depreciation on original cost and revalued amount was transferred from Revaluation reserve to Profit and Loss Account. However during the quarter/period entire depreciation is charged to Profit and Loss Account. Due to the same depreciation for the quarter/nine months is higher by Rs. 13.687 / Rs. 40.912 Million.


Because of change in accounting policy, hitherto followed by the company, the company has valued raw materials on specific identification of cost basis instead of quarterly moving average basis. Consequently, the loss for the quarter before tax is lower by Rs. 7.361 Million.


The Limited Review by the statutory Auditors for the quarter as required under clause 41 of the listing Agreement has been completed and the related report is being forwarded to the Stock Exchange. This report does not have any impact on the above results and above notes which need to be explained.

 

 

FIXED ASSETS

 

  • Leasehold Land
  • Buildings
  • Plant and Equipments
  • Furniture and Fixtures
  • Vehicles
  • Office Equipments

 

 

 

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.62.37

UK Pound

1

Rs.91.60

Euro

1

Rs.66.49

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILITY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

--

--CREDIT LINES

1~10

2

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

YES

--EPF

YES/NO

NO

TOTAL

 

14

 

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

 

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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.