MIRA INFORM REPORT
|
Report No. : |
351854 |
|
Report Date : |
02.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
RMG ALLOY STEEL LIMITED (w.e.f. 14.05.2013) |
|
|
|
|
Formerly Known
As : |
REMI METALS GUJARAT LIMITED (w.e.f. 23.01.1993) REMI METALS LIMITED |
|
|
|
|
Registered
Office : |
Plot No.1, GIDC Industrial Estate, Valia Road, Jhagadia District,
Bharuch – 392001, Gujarat |
|
Tel. No.: |
91-2645-619700/ 220406/ 7 |
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|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
06.10.1993 |
|
|
|
|
Com. Reg. No.: |
04-020358 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1159.700 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100GJ1993PLC020358 |
|
|
|
|
IEC No.: |
0390023078 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR14671G |
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|
|
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PAN No.: [Permanent Account No.] |
AAACR2121C |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer and Exporter of Steel and Steel Products such
as Seamless Tubes and Rolled Products. (Registered Activity) |
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|
|
|
No. of Employees
: |
Not available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (15) |
|
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 |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is established during the year 1993. It is engaged in the
business of manufacturing and exporting of steel and steel products such as
seamless tubes and rolled products. It has moderate track. For the financial year 2015, the company has weak operational activity
marked by losses incurred. Further, due to huge accumulated losses incurred it has eroded the net
worth position of the company. Business is active. Payments
terms are slow. The company can be considered for business dealings on fully 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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
LOCATIONS
|
Registered Office and Factory : |
Plot No.1, GIDC Industrial Estate, Valia Road, Jhagadia District, Bharuch
– 392001, Gujarat, India |
|
Tel. No.: |
91-2645-619700/ 220406/ 7 |
|
Fax No.: |
91-2645-226841/ 619800/ 220403 |
|
E-Mail : |
|
|
Website : |
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|
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|
|
Corporate Office : |
B-9, Trade World, Kamala City, S.B. Marg, Lower Parel, Mumbai –
400001, Maharashtra, India |
|
Tel. No.: |
91-22-66136000/ 24908000 |
|
Fax No.: |
91-22-24908020 |
|
E-Mail : |
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|
|
|
|
Sales Offices : |
Located at: ·
Ahmedabad ·
New Delhi ·
Chennai ·
Bangalore ·
Kolkata ·
Nagpur |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Atul Desai |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Abhishek Mandawewala |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Anuj Burakia |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mrs. Amita Karia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hanuman Kanodia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. S. Iyer |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Nilesh Javker |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2015
|
Category of
Shareholder |
Total No. of Shares |
% of Holdings |
|
(A) Shareholding of Promoter
and Promoter Group |
||
|
|
|
|
|
|
1984 |
0.00 |
|
|
94616875 |
87.26 |
|
|
94616875 |
87.26 |
|
|
94618859 |
87.26 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
94618859 |
87.26 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
50 |
0.02 |
|
|
10 |
0.00 |
|
|
21 |
0.02 |
|
|
81 |
0.04 |
|
|
|
|
|
|
1793685 |
1.68 |
|
|
|
|
|
|
5729255 |
6.25 |
|
|
4151042 |
3.83 |
|
|
1023726 |
0.94 |
|
|
3045 |
0.00 |
|
|
20681 |
0.02 |
|
|
1000000 |
0.92 |
|
|
12697708 |
12.70 |
|
Total Public shareholding (B) |
12697789 |
12.74 |
|
Total (A)+(B) |
107316648 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Steel and Steel Products such
as Seamless Tubes and Rolled Products. |
|
|
|
|
Products : |
-- |
|
|
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|
Brand Names : |
Not Available |
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|
Agencies Held : |
Not Available |
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|
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Exports : |
Not Available |
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Imports : |
Not Available |
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|
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Terms : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Million)
|
|||||||||||||||||||||||||||
|
Auditors : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountant |
|
Address : |
Nariman Point, Mumbai – 400021, Maharashtra, India |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Enterprise having
significant influence over the Company : |
|
CAPITAL STRUCTURE
After AS ON
31.03.2015
Authorised Capital: Rs. 1200.000 Million
Issued, Subscribed & Paid-up Capital: Rs. 1159.656 Million
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
110000000 |
Equity Shares |
Rs.6/- each |
Rs. 660.000 Million |
|
54000000 |
Preference Shares |
Rs. 10/- each |
Rs. 540.000 Million |
|
|
Total |
|
Rs. 1200.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
108435840 |
Equity Shares |
Rs.6/- each |
Rs. 650.600
Million |
|
44528571 |
12% Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 445.300
Million |
|
|
Total |
|
Rs. 1095.900 Million |
|
a. Reconciliation
of the Number of Shares Equity Shares : Face value of Rs.10 each |
31.03.2015 |
|
|
|
Number of shares |
Rs. in Million |
|
As at beginning of the year |
108435840 |
650.600 |
|
Share issued during the year |
-- |
-- |
|
Buyback/ forfeiture/ reduction of shares |
-- |
- |
|
-Outstanding at the end of the year |
108435840 |
650.600 |
|
|
|
|
|
Preference Share :Face value of Rs 10 each |
|
|
|
As at beginning of the year |
44528571 |
445.300 |
|
Share issued during the year |
6375700 |
63.800 |
|
Buyback/ forfeiture/ reduction of shares |
-- |
|
|
-Outstanding at the end of the year |
50904271 |
509.100 |
|
b. Details of Shareholders holding more than 5% of the aggregate
shares |
31.03.2015 |
|
|
Name of the Shareholders Equity Shares : |
Number of shares |
% held |
|
Welspun Steel Limited |
43247034 |
39.88 |
|
Widescreen Holding Private Limited |
24143333 |
22.27 |
|
Mangnificent Trading Private Limited |
7012334 |
6.47 |
|
Calplus Trading Private Limited |
6114390 |
5.64 |
|
|
|
|
|
12% Cumulative Redeemable Preference Shares (CRPS) : |
|
|
|
Welspun Steel Limited |
44528571 |
100.00 |
Terms/ rights
attached to
Equity shares:
The Company has 108,435,840 equity share having par value of Rs 6/- each fully paid up. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends, if any, in Indian rupees. The dividend proposed if any, by the board of Directors is subject to the approval of the Shareholders in ensuing annual general meeting.
In the event of liquidation of the company, the holders 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.
Preference Shares:
The CRPS carry dividend (cumulative) of 12% per annum. The CRPS 40,242,857 are redeemable with premium of Rs.25 per share in three equal annual installments payable from the end of eight years to ten years from 19th February 2013, the date of allotment and The CRPS 4,285,714 are redeemable with premium of Rs.25 per share in three equal annual installments payable from the end of eight years to ten years from 11th February 2014, the date of allotment.
The CRPS 6,375,700 are redeemable with premium of Rs.25 per
share in three equal annual installments payable from the end of eight years to
ten years from the date of allotment (i.e.11th November 2014).
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1159.700 |
1095.900 |
1053.000 |
|
(b) Reserves & Surplus |
(2641.800) |
(2145.100) |
(1911.000) |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
223.200 |
150.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(1482.100) |
(826.000) |
(708.000) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1950.600 |
1641.500 |
1614.200 |
|
(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 |
16.000 |
13.800 |
20.800 |
|
Total Non-current
Liabilities (3) |
1966.600 |
1655.300 |
1635.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1587.200 |
1297.500 |
1282.100 |
|
(b) Trade
payables |
621.800 |
1103.400 |
868.400 |
|
(c) Other
current liabilities |
236.100 |
480.900 |
549.100 |
|
(d) Short-term
provisions |
1.200 |
3.200 |
2.700 |
|
Total Current
Liabilities (4) |
2446.300 |
2885.000 |
2702.300 |
|
|
|
|
|
|
TOTAL |
2930.800 |
3714.300 |
3629.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1225.600 |
1641.600 |
1846.500 |
|
(ii)
Intangible Assets |
1.400 |
2.200 |
3.000 |
|
(iii)
Capital work-in-progress |
13.800 |
49.900 |
13.800 |
|
(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 |
23.100 |
21.900 |
29.200 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1263.900 |
1715.600 |
1892.500 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
452.700 |
616.700 |
794.600 |
|
(c) Trade
receivables |
664.700 |
1111.800 |
735.200 |
|
(d) Cash
and cash equivalents |
113.500 |
159.500 |
171.500 |
|
(e) Short-term
loans and advances |
428.800 |
105.600 |
31.400 |
|
(f) Other
current assets |
7.200 |
5.100 |
4.100 |
|
Total
Current Assets |
1666.900 |
1998.700 |
1736.800 |
|
|
|
|
|
|
TOTAL |
2930.800 |
3714.300 |
3629.300 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3337.300 |
4171.200 |
3541.900 |
|
|
|
Other Income |
116.000 |
15.900 |
26.700 |
|
|
|
TOTAL |
3453.300 |
4187.100 |
3568.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2136.300 |
2598.700 |
2134.000 |
|
|
|
Purchases of Stock-in-Trade |
14.000 |
0.000 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
96.200 |
174.900 |
207.200 |
|
|
|
Employees benefits expense |
160.600 |
195.300 |
251.800 |
|
|
|
Power and Fuel |
637.600 |
0.000 |
0.000 |
|
|
|
Other expenses |
384.200 |
1191.500 |
1200.900 |
|
|
|
Exceptional Items |
(225.900) |
(351.900) |
0.000 |
|
|
|
TOTAL |
3203.000 |
3808.500 |
3793.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
250.300 |
378.600 |
(225.300) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
498.800 |
497.000 |
485.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
(248.500) |
(118.400) |
(710.300) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
117.700 |
222.800 |
222.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(366.200) |
(341.200) |
(933.000) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
(366.200) |
(341.200) |
(933.000) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
8.700 |
0.000 |
80.600 |
|
|
TOTAL EARNINGS |
8.700 |
0.000 |
80.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
201.600 |
268.100 |
355.400 |
|
|
|
Stores & Spares |
30.700 |
37.700 |
47.100 |
|
|
|
Finished Goods |
14.000 |
0.000 |
0.000 |
|
|
|
Fixed Asset (Plant & Machinery) |
5.100 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
251.400 |
305.800 |
402.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.45 |
(3.15) |
(8.65) |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
47.100 |
80.000 |
333.700 |
|
Cash generated from operations |
(89.600) |
156.000 |
(324.100) |
|
Net Cash flows from operating activities |
(91.00) |
154.400 |
(325.600) |
QUARTERLY
RESULTS
|
PARTICULARS |
|
1 Quarter |
2 Quarter |
|
Unaudited |
|
30.06.2015 |
30.09.2015 |
|
Revenue |
|
738.500 |
702.400 |
|
Other Income |
|
3.800 |
2.600 |
|
Total Income |
|
742.300 |
705.000 |
|
Expenditure |
|
(749.000) |
(734.500) |
|
Interest |
|
(126.300) |
(114.200) |
|
PBDT |
|
(133.000) |
(143.700) |
|
Depreciation |
|
(29.000) |
(29.000) |
|
PBT |
|
(162.000) |
9172.700) |
|
Tax |
|
0.000 |
0.000 |
|
Net Profit |
|
(162.000) |
(172.700) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(10.97) |
(8.18) |
(26.34) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
7.50 |
9.08 |
(6.36) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(12.55) |
(9.31) |
(25.81) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25 |
0.41 |
1.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(2.42) |
(3.65) |
(4.56) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.68 |
0.69 |
0.64 |
STOCK
PRICES
|
Face Value |
Rs. 6.00/- |
|
Market Value |
Rs. 3.64/- |
FINANCIAL ANALYSIS
[all figures are in
Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
1053.000 |
1095.900 |
1159.700 |
|
Reserves & Surplus |
(1911.000) |
(2145.100) |
(2641.800) |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
150.000 |
223.200 |
0.000 |
|
Net
worth |
(708.000) |
(826.000) |
(1482.100) |
|
|
|
|
|
|
long-term borrowings |
1614.200 |
1641.500 |
1950.600 |
|
Short term borrowings |
1282.100 |
1297.500 |
1587.200 |
|
current maturities of
long-term debts |
333.700 |
80.000 |
47.100 |
|
Total
borrowings |
3230.000 |
3019.000 |
3584.900 |
|
Debt/Equity
ratio |
(4.562) |
(3.655) |
(2.419) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
3541.900 |
4171.200 |
3337.300 |
|
|
|
17.767 |
(19.992) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
3541.900 |
4171.200 |
3337.300 |
|
Profit |
(933.000) |
(341.200) |
(366.200) |
|
|
(26.34%) |
(8.18%) |
(10.97%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
---- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
No |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
----- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
----- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
------ |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
MANAGEMENT AND DISCUSSION
ANALYSIS
INDUSTRY STRUCTURE,
SCENARIO & DEVELOPMENT
The prolonged slowdown that set off in 2011-12 and has continued unabated into the current year has severely dented the revenue growth and profitability of Indian component manufacturers. Tier 2 and tier 3 suppliers and those dependent on the commercial vehicles segment have been key casualties. But, renewed optimism and expectations of a turnaround in our economy following the election of a stable government at the Centre have restored hopes of a recovery in auto sector demand. The Indian steel industry is headed for a period of overcapacity with additional supply coming on stream in the next fiscal likely to exceed any improvement in demand. The result may be continuing price and margin pressures for Indian steelmakers who are already under pressure due to slowing domestic demand and cheaper imports. Fiscal 2016 will see nearly 9 million tonnes (mt) in fresh capacity added to the existing capacity of about 95 mt. Steel imports from China nearly trebled during April 14-Jan 15 to over 29 lakh tonnes (LT), the country had imported 10.88 LT steel comprising 6.46 LT carbon steel and 441.70 LT alloy/stainless variety during the entire 2013-14 fiscal. The construction, automobile and white goods industries will attract a high demand for steel over the next decade. Vast opportunities exist where the unique properties of steel are critical. This could result in a much larger market penetration. Global steel demand over the next decade will largely depend on the emerging economies with increased government’s focus on infrastructure and housing sectors, India’s steel demand is likely to grow faster than production. While steel production continued to face intense pressure due to the million of raw materials - iron ore and coal - linkage, its consumption will grow sustainably. Almost all domestic steel makers are raising capacities, expecting a rise in consumption in the near future even as the ongoing difficulties due to subdued demand and rising imports are likely to persist for some more time. From the present installed capacity of around 100 million tonnes per annum, India aims to treble capacity to 300 mtpa by 2025- 26 using greenfield as well as brownfield routes, entailing a whopping investment of USD 200 billion. With the steel and mines minister announcing the setting up of four new steel plants in different states, experts say the steel sector will get a significant boost with an addition of 24 million tonnes capacity. If our GDP growth outstrips China, as is expected next year onwards, and as “Make in India” takes off, there is certainly room for additional capacity. Acknowledging that India’s “infrastructure does not match our growth ambitions, the finance minister announced heavy investment in building roads, railways, and other infrastructure projects. Road infrastructure will receive an outlay of Rs. 140310.000 million Rupees (US$2.26 billion), while railways will get Rs.100500.000 million Rupees (US$1.62 billion). A new National Investment and Infrastructure Fund will also be set up and receive Rs. 200000.000 million Rupees (US$3.23 billion) annually. These investments are expected to drive economic growth and attract investment in the country and could also prove to be a game-changer for the industry.
UNSECURED LOAN
|
Particulars |
As
on 31.03.2015 |
As
on 31.03.2014 |
|
LONG TERM
BORROWING |
|
|
|
Sales tax Deferred loan |
190.000 |
0.000 |
|
SHORT TERM
BORROWING |
|
|
|
Buyers credit arrangement |
350.100 |
139.100 |
|
Total |
540.100 |
139.100 |
CONTINGENT
LIABILITIES:
(Rs. in Million)
|
PARTICULARS |
31.03.2015 |
|
Capital Commitments not provided for (net of advances) |
2.300 |
|
Bank Guarantees |
105.700 |
|
Bills Discounted |
49.000 |
|
Service Tax |
13.900 |
|
Excise Duty |
3.400 |
|
Customs Duty |
0.700 |
|
Disputed Sales Tax Demands |
4.800 |
|
Disputed Income Tax Demand |
8.600 |
|
Claim against the Company not acknowledged as debts |
23.700 |
|
Dividend on Cumulative Redeemable Preference Shares |
110.800 |
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10574256 |
31/03/2015 |
94,200,000.00 |
LAKSHMI VILAS BANK LIMITED |
Bharat House, 104, B.S Marg, Fort, Mumbai - 400001, Maharashtra, INDIA |
C55633887 |
|
2 |
10537591 |
08/12/2014 |
1,690,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Building, Ground floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400023, Maharashtra, INDIA |
C37401197 |
|
3 |
10528482 |
13/10/2014 |
50,000,000.00 |
Andhra Bank |
16-B, Earnest House, NCPA Marg, Nariman point, Mumbai - 400021, Maharashtra, INDIA |
C30957534 |
|
4 |
10571783 |
30/09/2014 |
464,800,000.00 |
CORPORATION BANK |
104, BHARAT HOUSE, GROUND
FLOOR, MUMBAI SAMACHAR |
C54762414 |
|
5 |
10509078 |
27/06/2014 |
50,000,000.00 |
Andhra Bank |
16-B, Earnest House, NCPA Marg, Nariman point, Mumbai- - 400021 Maharashtra, INDIA |
C11340783 |
|
6 |
10489056 |
11/04/2014 |
40,000,000.00 |
The Federal Bank Limited |
The Federal Bank
Limited, Nariman Point, Mumbai - 400021, INDIA |
C03004280 |
|
7 |
10489055 |
11/04/2014 |
125,000,000.00 |
The Federal Bank Limited |
The Federal Bank Limited, Nariman Point, Mumbai - 400021, Maharashtra, INDIA |
C03002961 |
|
8 |
10469789 |
18/12/2013 |
50,000,000.00 |
Andhra Bank |
16-B, Earnest House, NCPA Marg, Nariman point, Mumbai—400021, Maharashtra, INDIA |
B92989110 |
|
9 |
10419282 |
23/02/2015 * |
880,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, INDIA |
C44990919 |
|
10 |
10406620 |
28/01/2013 |
989,200,000.00 |
Andhra Bank |
16-B, Earnest House, NCPA Marg, Nariman point, Mumbai - 400021, Maharashtra, INDIA |
B69035905 |
* Date of charge modification
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND SIX MONTHS
ON 30.09.2015
[RS.
IN MILLION]
|
PARTICULARS |
3 Months Ended |
6 Months Ended |
|
|
30.09.2015 [Unaudited] |
30.06.2015 [Unaudited] |
30.09.2015 [Unaudited] |
|
|
(a) Net sates/income from operations (Net of excise duty) |
702.000 |
736.800 |
1438.800 |
|
(b) Other Operating Income |
0.400 |
1.700 |
2.100 |
|
Total income from operations (net) |
702.400 |
738.500 |
1440.900 |
|
Expenses |
|
|
|
|
(a) Cost of materials consumed |
384.400 |
535.000 |
919.400 |
|
(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 |
54.500 |
(105.500) |
(51.000) |
|
(d) Employee benefits expense |
41.800 |
36.100 |
77.900 |
|
(e) Depreciation and Amortization Expenses |
29.000 |
29.000 |
58.000 |
|
(f) Other Expenses |
98.900 |
101.200 |
200.100 |
|
(g)Foreign Exchange |
169.500 |
182.200 |
351.600 |
|
Total expenses |
778.100 |
778.000 |
1556.000 |
|
Profit/ (Loss) from operations before other Income,
finance costs and exceptional Items (1-2) |
(75.700) |
(39.500) |
(115.100) |
|
Other Income |
2.600 |
3.800 |
6.400 |
|
Profit/ (Loss) from operations before other income,
finance costs and exceptional items (3+4) |
(73.100) |
(35.700) |
(108.700) |
|
Finance Costs |
114.200 |
126.300 |
240.500 |
|
Profit/ (Loss) from ordinary activities after finance cost
but before exceptional items (5-6) |
(187.300) |
(162.000) |
(349.200) |
|
Exceptional items |
(14.600) |
0.000 |
(14.600) |
|
Profit/ (Loss) from ordinary activities before tax (7+8) |
(172.700) |
(162.000) |
(334.600) |
|
Tax expenses |
0.000 |
0.000 |
0.000 |
|
Net Profit / (Loss) from ordinary activities after tax
(9-10) |
(172.700) |
(162.000) |
(334.600) |
|
Extraordinary item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
Net Profit / (Loss) for the period (11-12) |
(172.700) |
(162.000) |
(334.600) |
|
Share of profit' (loss) of associates |
|
|
|
|
Minority Interest |
|
|
|
|
Net Profit/ (Loss) after taxes, minority interest and share
of profit/(loss) of associates (13+14+15) |
|
|
|
|
Paid up equity share capital (Face Value of Rs 10/-each) |
650.600 |
650.600 |
650.600 |
|
Reserve excluding Revaluation Reserve as per Balance Sheet
of previous accounting year |
|
|
|
|
Earnings per share (before extraordinary items) of Rs.10/-
each (not annualized): |
|
|
|
|
(a) Basic |
(1.73) |
(1.63) |
(3.50) |
|
(b) Diluted |
(1.73) |
(1.63) |
(3.50) |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
A. Public Shareholding |
|
|
|
|
- Number of shares |
13816981 |
13816981 |
13816981 |
|
- Percentage of shareholding |
|
|
|
|
Promoters and Promoter group shareholding |
12.74 |
12.74 |
12.74 |
|
a) Pledged / Encumbered |
|
|
|
|
- Number of shares |
|
|
|
|
- Percentage of shares (as a % of the total shareholding
of Promoter & Promoter group) |
|
|
|
|
- Percentage of shares (as a % of the total Share Capital
of the Company) |
|
|
|
|
b) Non Encumbered |
|
|
|
|
- Number of shares |
94618859.00 |
94618859.00 |
94618859.00 |
|
- Percentage of shares (as a % of the total shareholding
of Promoter & Promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the total Share Capital of
the Company) |
87.26 |
87.26 |
87.26 |
|
|
PARTICULARS |
3
Months Ended 30.09.2015 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the Quarter |
3 |
|
|
Disposed of during the quarter |
3 |
|
|
Remaining unresolved at the end of the quarter |
0 |
(RS. IN MILLION)
|
SOURCES OF FUNDS |
30.09.2015 [Unaudited] |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)
Shareholders' Funds |
|
|
(a) Share Capital |
1159.700 |
|
(b) Reserves & Surplus |
(2976.300) |
|
Total
Shareholders’ Funds |
(1816.600) |
|
|
|
|
(2) Share
Application Money Pending Allotment |
280.000 |
|
|
|
|
(3) Non-Current
Liabilities |
|
|
(a) long-term borrowings |
2793.100 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
|
(c) Other long term
liabilities |
15.600 |
|
(d) long-term
provisions |
0.000 |
|
Total Non-current
Liabilities (3) |
2808.700 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short
term borrowings |
522.600 |
|
(b) Trade
payables |
746.300 |
|
(c) Other current
liabilities |
204.100 |
|
(d) Short-term
provisions |
1.200 |
|
Total Current
Liabilities (4) |
1474.200 |
|
|
|
|
TOTAL |
2746.300 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed
Assets |
1186.600 |
|
(b) Non-current Investments |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
23.600 |
|
(e) Other
Non-current assets |
0.000 |
|
Total Non-Current
Assets |
1210.200 |
|
|
|
|
(2) Current assets |
|
|
(a)
Current investments |
0.000 |
|
(b)
Inventories |
544.900 |
|
(c) Trade
receivables |
796.500 |
|
(d) Cash
and cash equivalents |
94.500 |
|
(e)
Short-term loans and advances |
96.700 |
|
(f) Other
current assets |
3.500 |
|
Total
Current Assets |
1536.100 |
|
|
|
|
TOTAL |
2746.300 |
Note;
1. The above results were reviewed by the Audit Committee and thereafter were approved and taken on record by the Board of Directors at its meeting held on 30th October 2015. The Statutory Auditor have carried out a limited review of the above result pursuant to clause 41 of the listing agreement.
2. The Company is engaged in the business of steel & steel products such as
Seamless Tubes & Rolled Products which in the opinion of the Management is
considered the only business segment in the context of Accosting Standard 17 on
"Segment Reporting".
3. Deferred tax asset is more than deferred tax liability as computed in
accordance with the Accounting Standard AS 22, specified under section 133 of
Companies Act, 2013, read with rule 7 of the companies (Accounts) rules, 2014,
The Company, as a matter of prudence has not recognized deferred tax asset.
4. The slowdown in end user industries and overall global weakness continues to
weigh on and is adversely impacting the performance. During the quarter and
half year ended, the company has received Rs. 28 core from promoters/strategic
investor which has resulted in improved liquidity situation and Consortium
banks have sanctioned fresh loans and the expected receipt of fiscal incentive
will also result in further improvement in the liquidity of the company. The
value added products approved by major OEM's will result in increased demand of
company's products. Management thus, expects substantial improvement in the
utilization of the capacity in the coming period. Accordingly, the financial
statements have been prepared on going concern basis and no adjustments are
required to the carrying amount of assets and liabilities.
5. The Company has already received final certificate of Entitlement from
industries commissioner and issuance of notification by finance department of
Gujarat. Accordingly, the company has become entitled to the benefits available
under the relevant scheme as provided in such eligibility certificate.
Accordingly, during the year ended 31st March 2015, the Company had accounted
for the refund on the purchase tax an amount of Rs. 225.900 million net off
Sales tax Liability Rs. 62.400 million. Further, during this quarter and half
year ended, the company has received Rs. 14.600 million over and above the
purchase tax receivable shown in the last year.
6. The figures for the previous periods / year has been regrouped / rearranged,
wherever necessary, to make them comparable.
7. The Company has allotted 80,00,000 12% Cumulative Redeemable Preference
shares (CRPs) of Rs. 10/- each at a premium of Rs.25/- per share to Welspun
Fintrade (P) Limited on 23rd October 2015.
FIXED ASSETS
- Leasehold
Land
- Freehold Land
- Plant and
Machinery
- Electrical
Installation
- Buildings
- Office
Equipments
- Furniture and
Fixture
- Vehicles
- Computer
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 records 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. 66.81 |
|
UK Pound |
1 |
Rs. 100.37 |
|
Euro |
1 |
Rs. 70.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILITY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
15 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.