MIRA INFORM REPORT
|
Report No. : |
352859 |
|
Report Date : |
03.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA SANYO SPECIAL STEEL PRIVATE LIMITED (w.e.f. 18.09.2012) |
|
|
|
|
Formerly Known
As : |
NAVYUG SPECIAL STEEL PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
74, Ganesh Apartment, L.J. Road, Opposite Sitaladevi Temple, Mahim
(West), Mumbai – 400016, Maharashtra |
|
Tel. No.: |
91-2192-263070 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
08.11.2011 |
|
|
|
|
Com. Reg. No.: |
11-223696 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.100.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U27310MH2011PTC223696 |
|
|
|
|
IEC No.: |
0312012098 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMN19358D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCN7895E |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
The subject is engaged in manufacturing of steel and steel based products. (Registered Activity) |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Mahindra And Mahindra Limited’. It is
engaged in manufacturing of steel and steel based products. The company possesses moderate operational performance and it has
incurred huge losses from its operational activities. However, rating takes into consideration company’s above average
financial profile marked by its sound net worth base along with adequate debt
coverage indicators and favorable gap between trade payables to its
receivables. Rating also takes into consideration strong financial and managerial
support that company receives from its holding entity backed by its well
experience management team. Trade relations are reported as fair. Payment terms are reported to be
usually correct. In view of aforesaid, the company can be considered for business
dealings at usual trade terms and condition. Note: As per registrar of companies the date of balance sheet (i.e.
financial filed) is shown as 31.03.2015 but the documents related to the financials
for the year 31.03.2015 are not available from any source. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
INFORMATION DECLINED
Management Non-Cooperative (Tel No.:91-2192-263070)
LOCATIONS
|
Registered Office : |
74, Ganesh Apartment, L.J. Road, Opposite Sitaladevi Temple, Mahim
(West), Mumbai – 400016, Maharashtra, India |
|
Tel. No.: |
91-22-24444287 |
|
Fax No.: |
91-22-24458196 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory/ Administrative Office
: |
MUSCO, Jagdish Nagar, Khopoli, Raigad
- 410216, Maharashtra, India |
|
Tel. No.: |
91-2192-260500/ 528/ 263318/ 263347 |
|
Fax No.: |
91-2192-263076/ 263073 8 263785 |
DIRECTORS
As on 28.08.2014
|
Name : |
Mr. Ajay Kumar Mantry |
|
Designation : |
Additional Director |
|
Address : |
C-3/903, Brahma Suncity CHS Limited, Wadgaon Sheri, Pune - 411014, Maharashtra, India |
|
Date of Appointment : |
26.10.2015 |
|
DIN No.: |
07319828 |
|
|
|
|
Name : |
Nobuyuki Takumi Tanaka |
|
Designation : |
Director |
|
Address : |
109, Sugoudani, Himeji-Shi, Hyogo, Pin Code 6712243, Japan |
|
Date of Birth/Age : |
08.10.1948 |
|
Date of Appointment : |
05.09.2012 |
|
Din No.: |
06367343 |
|
|
|
|
Name : |
Mr. Daljit Lilaram Mirchandani |
|
Designation : |
Director |
|
Address : |
101, Sindhi Society Aundh, Pune – 411007, Maharashtra, India |
|
Date of Birth/Age : |
26.10.1947 |
|
Date of Appointment : |
10.08.2012 |
|
Din No.: |
00022951 |
|
|
|
|
Name : |
Tomofumi Osaki |
|
Designation : |
Director |
|
Address : |
2-24-7-1007,Tamagawadai, Setagaya-ku, Tokyo, NA, Japan |
|
Date of Birth/Age : |
20.08.1964 |
|
Date of Appointment : |
21.05.2014 |
|
Din No.: |
06870060 |
|
|
|
|
Name : |
Kozo Takahashi |
|
Designation : |
Director |
|
Address : |
3-4-10-302 Ichiba Funabashi-shi, Chiba, 2730001, Japan |
|
Date of Birth/Age : |
06.03.1959 |
|
Date of Appointment : |
18.07.2014 |
|
Din No.: |
06921700 |
|
|
|
|
Name : |
Ms. Jayashree Vaidhyanthan |
|
Designation : |
Director |
|
Address : |
Apartment 2B, 76 PT Rajan Road, KK Nagar, Chennai - 600078, Tamil Nadu, India |
|
Date of Appointment : |
31.03.2015 |
|
Din No.: |
07140297 |
|
|
|
|
Name : |
Mr. Shriprakash Shukla |
|
Designation : |
Director |
|
Address : |
C-Wing,Flat - 2202, Chaitanya Towers, Appasaheb, Marathe Marg, Prabhadevi, Opp. Sidhivinayak Temple, Mumbai - 400025, Maharashtra, India |
|
Date of Appointment : |
31.03.2015 |
|
Din No.: |
00007418 |
|
|
|
|
Name : |
Mr. Uday Subrata Gupta |
|
Designation : |
Managing Director |
|
Address : |
D-40, Terrace Duplex, The Woods Kale Wadi Road, Waked Aundh Annexe,
Pune – 411057, Maharashtra, India |
|
Date of Birth/Age : |
13.11.1958 |
|
Date of Appointment : |
11.11.2011 |
|
Din No.: |
03514282 |
KEY EXECUTIVES
|
Name : |
Mr. Pradeep Salian |
|
Designation : |
Company Secretary |
|
Address : |
N/6/7, Ganpati Nivas, Bangur Nagar, Goregaon (West), Mumbai - 400090, Maharashtra, India |
|
Date of Appointment : |
03.08.2012 |
|
PAN No.: |
AHAPS0593F |
|
Email : |
|
|
|
|
|
Name : |
Mr. Sudhir Yagnik |
|
Designation : |
Chief Finance Officer |
|
Address : |
169, Mukta,, Ram Babu Street, Kolkata - 700007, West Bengal, India |
|
Date of Appointment : |
21.05.2014 |
|
PAN No.: |
AAKPY3916D |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2015
|
Names of Shareholders |
|
No. of Shares |
|
Mahindra and Mahindra Limited |
|
5099996 |
|
Sanyo Special Steel Company Limited, Japan |
|
2900000 |
|
Mitsui and Company Limited, Japan |
|
2000000 |
|
Mahindra and Mahindra Limited Jointly with Luthra Hemant |
|
1 |
|
Mahindra and Mahindra Limited Jointly with Gupta Uday |
|
1 |
|
Mahindra and Mahindra Limited Jointly with Bhiwandiwala Zhooben |
|
1 |
|
Mahindra and Mahindra Limited Jointly with S. Durgashankar |
|
1 |
|
Total |
|
10000000 |
LIST OF ALLOTTEES
As on 18.05.2015
|
NAME OF
ALLOTTEES |
No.
of shares |
|
Mahindra and Mahindra Limited |
435365 |
|
Sanyo Special Steel Company Limited, Japan |
247560 |
|
Mitsui and Company Limited, Japan |
170731 |
|
Total |
853656 |
Equity Share Break up (Percentage of Total Equity)
As on 28.08.2014
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
49.00 |
|
Bodies corporate |
51.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The subject is engaged in manufacturing of steel and steel based products. (Registered Activity) |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Divulged |
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|
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|
Agencies Held : |
Not Divulged |
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|
|
|
Exports : |
Not Divulged |
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|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
|
|
Auditors :(As on 31.03.2015) |
|
|
Name : |
MMJ and Associates |
|
Address : |
3rd and 4th Floor, Vaastu Darshan, ‘B’ Wing, Above
Central Bank of India Azad Road, Andheri (East), Mumbai – 400069,
Maharashtra, India |
|
Tel No.: |
91-22-61919293 |
|
Email : |
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Holding company : |
L65990MH1945PLC004558 |
|
|
|
|
Fellow Subsidiary
company : |
L99999MH1962PLC012542
L27100MH1999PLC121285
U51900MH1978PLC020222
U63000MH2007PLC173466
U29130MH2004PTC168150
U29299MH1963PLC019745
U34100MH2007PLC171151 |
|
|
|
|
Enterprises which
are owned, or have significant influence of or are partners with Key management
personnel and their relatives : |
|
CAPITAL STRUCTURE
After 28.08.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10853656 |
Equity Shares |
Rs.10/- each |
Rs.108.536
Million |
|
|
|
|
|
As on 28.08.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000
Million |
|
|
|
|
|
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 |
100.000 |
100.000 |
0.100 |
|
(b) Reserves & Surplus |
2460.497 |
3143.881 |
(0.057) |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2560.497 |
3243.881 |
0.043 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
543.750 |
742.716 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
50.000 |
50.000 |
0.000 |
|
(d) long-term
provisions |
45.346 |
46.934 |
0.000 |
|
Total Non-current
Liabilities (3) |
639.096 |
839.650 |
0.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
712.422 |
218.547 |
0.000 |
|
(b) Trade
payables |
1506.246 |
1623.126 |
0.050 |
|
(c) Other
current liabilities |
294.868 |
149.865 |
0.017 |
|
(d) Short-term
provisions |
37.041 |
14.979 |
0.000 |
|
Total Current
Liabilities (4) |
2550.577 |
2006.517 |
0.067 |
|
|
|
|
|
|
TOTAL |
5750.170 |
6090.048 |
0.110 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible
assets |
1830.308 |
1979.065 |
0.000 |
|
(ii)
Intangible Assets |
0.277 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
20.304 |
18.683 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
140.000 |
140.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
24.525 |
18.516 |
0.000 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
2015.414 |
2156.264 |
0.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1207.992 |
1399.396 |
0.000 |
|
(c) Trade
receivables |
1628.440 |
1634.545 |
0.000 |
|
(d) Cash
and cash equivalents |
755.398 |
767.811 |
0.110 |
|
(e)
Short-term loans and advances |
120.154 |
120.091 |
0.000 |
|
(f) Other
current assets |
22.772 |
11.941 |
0.000 |
|
Total
Current Assets |
3734.756 |
3933.784 |
0.110 |
|
|
|
|
|
|
TOTAL |
5750.170 |
6090.048 |
0.110 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
GROSS INCOME |
7694.647 |
5911.883 |
0.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
(291.408) |
(235.499) |
(0.057) |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
180.778 |
130.291 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(472.186) |
(365.790) |
(0.057) |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
211.198 |
149.829 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
(683.384) |
(515.619) |
(0.057) |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
(135.349) |
0.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
(683.384) |
(380.270) |
(0.057) |
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(68.34) |
(38.03) |
(5.70) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current Maturities of Long term debt |
255.216 |
60.938 |
0.000 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flows from (used in) operations |
(265.792) |
(96.558) |
0.100 |
|
Net cash flow from operating activity |
(273.105) |
(100.459) |
0.100 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(8.88) |
(6.43) |
NA |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
(3.79) |
(3.98) |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(12.23) |
(8.69) |
(51.82) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.27) |
(0.16) |
(1.33) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.59 |
0.33 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.46 |
2.01 |
1.64 |
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 |
0.100 |
100.000 |
100.000 |
|
Reserves & Surplus |
(0.057) |
3143.881 |
2460.497 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
0.043 |
3243.881 |
2560.497 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
792.716 |
543.750 |
|
Short term borrowings |
0.000 |
218.547 |
712.422 |
|
CURRENT MATURITIES OF
LONG-TERM DEBTS |
0.000 |
60.938 |
255.216 |
|
Total
borrowings |
0.000 |
1072.201 |
1511.388 |
|
Debt/Equity
ratio |
0.000 |
0.331 |
0.590 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
5911.883 |
7694.647 |
|
|
30.156 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
5911.883 |
7694.647 |
|
Profit |
(380.270) |
(683.384) |
|
|
(6.43%) |
(8.88%) |
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 |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
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 |
|
|
17 |
Details of sister concerns |
No |
|
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 |
|
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
|
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
MANAGEMENT DISCUSSION
AND ANALYSIS (MDA)
COMPANY OVERVIEW
Mahindra Sanyo Special Steel Private Limited, (MSSSPL), earlier known as Navyug Special Steel Private Limited is a subsidiary of Mahindra and Mahindra Limited. (M&M). During the year Mahindra Ugine Steel Company Limited, which used to hold 51% of shares in the share Capital of the Company, sold and transferred its stake to M&M with effect from 3rd October, 2013. The Company is a manufacturer of Alloy steel products and ring rolling and its plant is located at Khopoli, Maharashtra.
ANALYSIS OF STEEL AND
RING (BEARING RACES) BUSINESS
Overview
The Company produces special alloy steel through Electric Furnace (EAF) route where steel scrap is the main raw material, and caters mainly to Automotive, Engineering, Oil and Gas, Tools and Die Industry, Power Generation Sector, Bearings and other capital goods industries.
The Ring Rolling business is forward integration for the Steel business and caters to the Bearing industry (especially antifriction bearings) as well as Auto parts both in as forged and/or green machined condition: It manufactures rings through the closed die forging as well as seamless ring rolling processes.
Industry Structure
and Development
The performance of the Alloy steel industry is very closely linked to the performance of the Indian automotive and engineering industries in particular. Alloy steel, a value added product, is a vitally important segment of the lndian steel industry, even though it constitutes-only about 8% of the production of the total steel production in India. Alloy steels are used in specialized area like Automotive, Engineering, Defense, Railways and Textile sectors. Some of the end uses of the Alloy Steel are in making of Transmission parts, Bearings, Axles, Gears, Crankshafts, Fuel Injection pumps etc. The Alloy steel is also used in the Oil and Gas sector and Power generation sectors. India is fast becoming a global hub for Automobile industry and with availability of skilled labour at relatively lower cost provide 1 good growth opportunity for the alloy steel industry. However, the industry is currently facing a slew of challenges viz. slowing economic growth, inadequate availability of power and iron ore at competitive rates, volatility in Forex which adversely impacts the import of raw materials, threats of cheaper imports on account of global surplus capacities, high finance cost etc.
As per the Economic Survey of India, the growth rate of the lndian economy decelerated to a rate of around 4.9% in the FY2014 as compared 5% recorded in the previous financial year. The moderation in growth is primarily attributable to weakness in industry comprising the mining and quarrying, manufacturing, electricity, gas and water supply and construction sectors.
Uncertainty in governmental decision making led to policy stagnation, consequently the overall economic growth and consumer sentiment have also been affected negatively. The new Government elected has signalled commitment to revive the economy by reforming certain policy related decisions. However, poor consumer sentiment and the slowdown of the global economy means that the revival of the Indian economy can take some time. The GDP growth is projected to marginally improve to 5.5% in FY2015.
FINANCIAL PERFORMANCE
The year under review continued to witness the effect of economic slowdown, inflationary trends in the cost of metallic and costlier import of raw materials due to volatility in Forex all of which have impacted the Company's performance. Increased power and fuel costs which largely remain un-recovered from the customers due to competitive pressure further compounded the problem although there is some relief due to the Government's announcement of reduction in power tariff. The Company has taken several cost cutting measures to improve the efficiency in performance which has resulted in reducing the loss in the last quarter of the period under review.
Post operational of the joint venture, the steel business has been taking every effort with the help of technical and marketing expertise of the joint venture partners, Sanyo Special Steel Company Limited and Mitsui and Co., Limited., respectively to improve the quality, process efficiency, productivity, marketing strategy and at the same time continue to tab steps to reduce the cost, and optimize the available resources for improving overall performance of the steel business.
During the year, the sales revenue of the Ring Business recorded modest growth. The rise in sales indicates improvement in customer satisfaction. To further meet customer requirement of machined rings, the company is in the process of developing and establishing machining capacity with Vendors. With strong order book, the Ring business is expected to improve operational performance in the next financial year.
Opportunities and
Strategic Outlook
lndia is one of the leading producers of Steel at global level. The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry. lndia is expected to show robust growth in steel use in the coming years due to its domestic economy, massive infrastructure needs and expansion of industrial production. This growth is mainly driven by construction and automobile industries.
In the past two years, the continuing Euro-zone problem, economic stagnation or slow growth in developed economies and a cooling of emerging economies took a toll on the industry. Growth in the Chinese economy, which in recent years has been one of the main demand drivers for steel, slowed down. Global overcapacity has been a perennial problem. Stiff competition from cheaper imports and from domestic producers with new or expanded facilities continues to result in significant oversupply of steel compared to demand.
The slowdown in the Auto sector impacted the demand for the steel. As a result, the Steel business continues to increase its focus on exploring business opportunities in the Tool and dies; my Oil] Gas and Mining and Power generation sectors both domestically and for exports. New areas like renewable energy sector are also been explored. Similarly the Rings business is also focusing on improving its export business by adding new international overseas Original Equipment Manufacturer (OEM) of Bearings. These OEMs prefer MSSSPL Rings since it has a captive steel source and the approval of steel and rings can happen together. The company is committed to achieve the stated objectives of the joint venture viz. operational excellence, improved pro8uctivity and enhancement of both cost and quality to international standards to enable it to achieve its full business potential
The overall scenario is expected to improve in near future. India demand will pick up pace. After two years of contraction, steel demand is likely to improve thanks to a rise in demand from the automobile sector and recovery in the construction sector. Steel demand is expected grow in the U.S. on the back of an improving global economy and the strong momentum in the automotive markets. Demand in Japan will also increase due to rebuilding activity in the major earthquake affected areas and as Tokyo gears up to host the 2020 Olympic Games. Overall, with the global economy gradually on the mend and activities picking up in automotive and construction industries, prospects look brighter for the steel industry in the years to come. The World Steel Association expects continued recovery in steel demand in 2014 and projects global steel usage to increase 3.3% in 2014. Improving demand is also expected to perk up steel prices.
PERFORMANCE:
Given the economic slow down particularly that in the Auto segment during the year under review, the Steel and Ring business both suffered a loss. Due to a decrease in demand there was intense competitive pressure on pricing in the special alloy steel market and a consequent contraction in margin due to pricing pressures coupled with increase in input cost and a steep dollar devaluation. With the technical support of our joint venture partners management continues to undertake initiatives for increasing margin by way of rationalization of product mix and processes and further improvements in operating efficiencies, productivity and yield. The Company also foresees a significant increase in sales in the value added segments as process/quality audits by several global MNCs currently under way are expected to fructify into sales in the near future.
During the year, the Company sold 102,969 tonnes of alloy steel products. The Company registered sales revenue of Alloy and Steel products aggregating Rs.7031.117 Million for the year under review.
The Company also registered sales of 3,301 tonnes of Ring (Bearing Races) products for a value of Rs. 506.922 Million during the year
The Company has incurred a loss of Rs. 6,833.84 lakhs during the year.
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10507668 |
12/06/2014 |
820,000,000.00 |
ICICI BANK LIMITED |
ICICI TOWER,NBCC PALACE,, Bism Pitamah Marg, Prag |
C10268662 |
|
2 |
10424103 |
18/03/2015 * |
4,520,000,000.00 |
State Bank of India |
Commercial Branch, N.G.N. Vaidya Marg,, Fort,, Mu |
C49584568 |
|
3 |
10370111 |
18/03/2015 * |
3,700,000,000.00 |
State Bank of India |
COMMERCIAL BANK, N.G.N.VIADYA MARG, FORT., MUMBAI, Maharashtra -
400023, INDIA |
C49593635 |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Other money for which company is contingently liable |
92.045 |
174.461 |
|
|
|
|
FIXED ASSETS
- Land
- Buildings
- Plant and equipment
- Factory equipments
- Furniture and fixtures
- Vehicles
- Motor vehicles
- Office equipment
- Computer equipments
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.61 |
|
|
1 |
Rs.100.34 |
|
Euro |
1 |
Rs.70.66 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.