MIRA INFORM REPORT
|
Report No. : |
355098 |
|
Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
USHA MARTIN LIMITED |
|
|
|
|
Registered
Office : |
2A, Shakespeare Sarani, ‘Mangal Kalash’, Kolkata – 700071, West Bengal |
|
Tel. No.: |
91-33-39800300 |
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|
Country : |
India |
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|
Financials (as
on) : |
31.03.2015 |
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|
Date of
Incorporation : |
22.05.1986 |
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|
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Com. Reg. No.: |
21-091621 |
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Capital
Investment / Paid-up Capital : |
Rs. 305.400
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31400WB1986PLC091621 |
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|
|
|
IEC No.: |
2188000633 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAACU2339M |
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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
: |
Manufacturing of Speciality Steel and value added Steel Products like Steel Wire Rods, Rolled Products, Billets, Pig Iron and allied products and also Wire and Wire Ropes Products like Steel Wires, Strands, Wire Ropes, Cord, Bright Bar, related accessories, etc. [Registered Activity] |
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|
|
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No. of Employees
: |
1916 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 35000000 |
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|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject was incorporated in the year 1986 and it is engaged in
manufacturing of specialty steel and value added steel products. It is an established
company having moderate track record. As per 2015 financial record, the company has reported some
accumulated losses from its business operations from past few years. Rating is further constrained on account of deterioration in overall
gearing due to reduction in networth on account of loss incurred from its
operations and increase in external borrowings recorded during the year under
review. However, the rating derives strength from long experience and
satisfactory track record of the promoters, leadership position in the
domestic steel wire ropes industry, strong presence in the export market. Trade relations are fair. Business is active. Payments are reported to
be slow but correct. In view of aforesaid, the company can be considered for business
dealings with some caution. |
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 |
CARE |
|
Rating |
Short term Bank facilities = A3+ |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
November 27, 2015 |
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.
LOCATIONS
|
Registered/ East
Regional Office : |
2A, Shakespeare Sarani, ‘Mangal Kalash’, Kolkata – 700071, West Bengal, India |
|
Tel. No.: |
91-33-39800300/ 0458 |
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Fax No.: |
91-33-22829029/ 39800500/ 39800400 |
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E-Mail : |
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Website : |
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North Regional
Office : |
701, ‘Surya Kiran’, 19, Kasturba Gandhi Marg, New Delhi – 100001, India |
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Tel. No.: |
91-11-23315156/ 57/ 58/ 23711232/ 23715220 |
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Fax No.: |
91-11-23320723/ 5586 |
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E-Mail : |
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South Regional
Office : |
Plot No. L9 (1), Phase-II, Sipcot Industrial Park, Sriperumbudur, Kancheepuram 602105, Tamilnadu, India |
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Tel. No.: |
91-44-37175100 (24 Lines) |
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Fax No.: |
91-44-37175200 |
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E-Mail : |
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West Regional
Office : |
168, CST Road, Agarwal Industrial Estate, Kalina, Santa Cruz (East), Mumbai - 400098, Maharashtra, India |
|
Tel. No.: |
91-22-30645400 |
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Fax No.: |
91-22-26526774 |
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E-Mail : |
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India Works/ Mines : |
Steel Business ·
UAS Division, Adityapur, Jamshedpur-831001 ·
Iron Ore Mines, Barajamda, Jharkhand-833221 Wire Rope Business ·
Wire Ropes & Speciality Products Division ·
Tatisilwai, Ranchi – 835 103 Wire & Wire Rope Division-North ·
Hoshiarpur, Punjab – 146024 ·
Speciality Product Division – South · Sri Perumbudur, Tamil Nadu – 602105 |
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|
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Overseas Works : |
· Navanakoran Industrial Estate, Thailand (Usha Siam Steel Industries) · Jebel Ali Free Zone, Dubai, UAE (Brunton Wolf Wire Ropes) · Worksop, Nottinghamshire, UK (Usha Martin UK) |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. B K Jhawar |
|
Designation : |
Chairman Emeritus |
|
Profile of Director
: |
Basant Kumar Jhawar, aged about 80 years is a commerce graduate and founder of Usha Martin Group. He has founded several successful industrial enterprises in India and abroad. Till 10th May, 2010, he served as Chairman on Board of Directors. Mr. Jhawar is actively involved and spearheading activities in the fields of community development, economic and social upliftment and empowerment of people and various other CSR initiatives on behalf of Usha Martin Group including through Krishi Gram Vikash Kendra, an NGO in operation for over 37 years in the state of Jharkhand. |
|
Date of Appointment
: |
19.05.1998 |
|
DIN No.: |
00086237 |
|
Directorship in
other Companies : |
· Orient Paper & Industries Limited · KGVK Agro Limited · KGVK Social Enterprises Limited |
|
|
|
|
Name : |
Mr. Prashant Jhawar |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Rajeev Jhawar |
|
Designation : |
Managing Director |
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|
Name : |
Mr. P K Jain |
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Designation : |
Joint Managing Director [Wire and Wire Rope Business] |
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|
Name : |
Mr. Brij K Jhawar |
|
Designation : |
Director |
|
Profile of Director
: |
Brij Kishore Jhawar, aged about 78 years, cofounder of Usha Martin Group is a mechanical engineer from Jadavpur University and was graduated Diploma of Fellowship by the Institute of Engineers ( India) in 1987 for his outstanding contribution to progress and advancement of mechanical engineering fraternity. He is a great believer in human values and human resource development. He is very conscious of industries’ social obligations and is actively involved for over 35 years in discharging CSR obligations on behalf of Usha Martin group through Krishi Gram Vikash Kendra, an NGO operating in rural areas of Jharkhand. |
|
Date of Appointment
: |
27.10.2004 |
|
DIN No.: |
00086200 |
|
Directorship in
other Companies : |
KGVK Agro Limited |
|
|
|
|
Name : |
Mr. S Singhal |
|
Designation : |
Director |
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|
Name : |
Mrs. Ramni Nirula |
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Designation : |
Director |
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|
Name : |
Mr. G N Bajpai |
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Designation : |
Director |
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|
|
Name : |
Mr. Jitender Balakrishnan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. P.S. Bhattacharyya |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Amitava Sircar |
|
Designation : |
Chief Operating Officer [Steel Division] |
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|
|
|
Name : |
Mr. A K Somani |
|
Designation : |
Chief Financial Officer and Company Secretary |
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|
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|
Name : |
Mr. Pavan Trivedi |
|
Designation : |
President [Commercial and Accounts] |
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|
Name : |
Mr. D J Basu |
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Designation : |
President [HR] |
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|
Name : |
Mr. Debasish Mazumdar |
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Designation : |
Associate President [Steel] |
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|
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|
Name : |
Mr. Ashutosh Dixit |
|
Designation : |
Associate President [Wire and Wire Rope Business] |
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|
Name : |
Mr. Sanjay Nath |
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Designation : |
Senior Vice President [Sales and Marketing] |
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Name : |
Mr. S K Jala |
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Designation : |
Senior Vice President [IT] |
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Name : |
Mr. Malay Kumar De |
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Designation : |
Senior Vice President [Metallurgical Services] |
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Name : |
Dr. I N K Rao |
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Designation : |
Senior Vice President [Environment] |
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Name : |
Mr. Anoop Saxena |
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Designation : |
Senior Vice President [TPM] |
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|
Name : |
Mr. M A Dhere |
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Designation : |
Senior Vice President [SMS] |
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|
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|
Name : |
Mr. Debasish Majumder |
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Designation : |
Senior Vice President [QA] |
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|
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|
Name : |
Mr. A. K. Samanta |
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Designation : |
Senior Vice President [Sales and Marketing] |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2015
|
Category of Shareholder |
Total No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5882267 |
2.19 |
|
|
86611935 |
32.21 |
|
|
92494202 |
34.40 |
|
|
|
|
|
|
2422983 |
0.90 |
|
|
33336135 |
12.40 |
|
|
35759118 |
13.30 |
|
Total shareholding of Promoter and Promoter Group
(A) |
128253320 |
47.69 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
36526561 |
13.58 |
|
|
17990 |
0.01 |
|
|
9376047 |
3.49 |
|
|
32315785 |
12.02 |
|
|
78236383 |
29.09 |
|
|
|
|
|
|
17047288 |
6.34 |
|
|
|
|
|
|
25952485 |
9.65 |
|
|
19418754 |
7.22 |
|
|
62418527 |
23.21 |
|
Total Public shareholding (B) |
140654910 |
52.31 |
|
Total (A)+(B) |
268908230 |
100.00 |
|
(C) Shares held by Custodians and against which
Depository Receipts have been issued |
|
|
|
|
23743580 |
0.00 |
|
|
12089970 |
0.00 |
|
|
35833550 |
0.00 |
|
Total (A)+(B)+(C) |
304741780 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Speciality Steel and value added Steel Products like Steel Wire Rods, Rolled Products, Billets, Pig Iron and allied products and also Wire and Wire Ropes Products like Steel Wires, Strands, Wire Ropes, Cord, Bright Bar, related accessories, etc. [Registered Activity] |
|
|
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Brand Names : |
-- |
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|
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Agencies Held : |
-- |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
1916 (Approximately) |
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Bankers : |
·
State Bank of India ·
Axis Bank Limited ·
ICICI Bank Limited ·
HDFC Bank Limited ·
IndusInd Bank Limited ·
Bank of Baroda ·
The Ratnakar Bank Limited
|
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
Kolkata, West Bengal, India |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Subsidiaries : |
· Usha Martin International Limited (UMIL) · Usha Martin Americas Inc. (UMAI) · Usha Martin UK Limited (UMUK) · Usha Martin Vietnam Co. Limited (UMVCL) · Usha Martin Australia Pty Limited (UMAUS) · European Management and Marine Corporation Limited (EMMC) · EMM Caspian Limited (EMM Caspian) · Usha Siam Steel Industries Public Company Limited (USSIL) · Brunton Shaw UK Limited (BSUK) · Usha Martin Singapore Pte. Limited (UMSPL) · Brunton Wolf Wire Ropes FZCO. (BWWR) · P. T. Usha Martin Indonesia (PTUMI) · De Ruiter Staalkabel B.V. (De Ruiter) · Usha Martin Europe B.V. (UMEBV) · Usha Martin Italia S.R.L (UMISRL) · UM Cables Limited (UMCL) · Usha Martin Power and Resources Limited (UMPRL) · Bharat Minex Private Limited (BMPL) · Usha Martin China Company Limited (UMCCL) · Gustav Wolf Speciality Cords Limited (GWSCL) [with effect from 10th February, 2015] |
|
|
|
|
Joint Venture
Company : |
· Gustav Wolf Speciality Cords Limited (GWSCL) [cease to be a Joint Venture Company with effect from 9th February, 2015] · Pengg Usha Martin Wires Private Limited (PUMWPL) · CCL Usha Martin Stressing Systems Limited (CCLUMSSL) · Dove Airlines Private Limited (DAPL) |
|
|
|
|
Substantial
Interest in voting power of the entity : |
UMI Special Steel Limited (UMISSL ) - (under liquidation) |
|
|
|
|
Enterprise over
which Key Managerial Personnel is able to exercise significant influence : |
Ambe International Pte Limited (AIPL) |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
Re. 1/- each |
Rs. 500.000 Million |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs. 50/- each |
Rs. 500.000 Million |
|
|
|
|
|
|
|
Total |
|
Rs. 1000.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
304741780 |
Equity Shares |
Rs. 10/- each |
Rs. 304.700
Million |
|
|
Add: Shares Forfeited |
|
Rs. 0.700
Million |
|
|
|
|
|
|
|
Total |
|
Rs. 305.400 Million |
35833550
(31st March, 2014: 44093175) Equity Shares are represented by Global Depository
Receipts (GDRs) out of above paid up Equity Shares.
Rights, preference and
restrictions attached to shares issued:
The Company has only one
class of equity shares having a par value of Re.1/- per share. Each shareholder
is eligible for one vote per share held (except in case of GDRs). The dividend
if proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim
dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
Details of shares held by shareholders
holding more than 5 % of the aggregate shares in the Company
|
|
As at 31st March, 2015 |
|
|
|
No of Shares |
% |
|
UMIL
Shares & Stock Broking Services Limited |
38,888,369 |
12.76 |
|
Usha
Martin Ventures Limited |
20,627,588 |
6.77 |
|
Peterhouse
Investments Limited |
18,971,455 |
6.23 |
|
Peterhouse
Investments India Limited |
20,767,330 |
6.81 |
|
Deutsche
Bank Trust Company Americas |
35,833,550 |
11.76 |
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 |
305.400 |
305.400 |
305.400 |
|
(b) Reserves & Surplus |
11659.000 |
14921.700 |
15143.800 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
300.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
12264.400 |
15227.100 |
15449.200 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
26002.700 |
25469.400 |
22957.000 |
|
(b) Deferred tax liabilities (Net) |
756.200 |
1968.000 |
2079.800 |
|
(c)
Other long term liabilities |
1046.000 |
2480.300 |
5010.800 |
|
(d)
long-term provisions |
271.800 |
309.800 |
285.300 |
|
Total
Non-current Liabilities (3) |
28076.700 |
30227.500 |
30332.900 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
7448.500 |
6689.900 |
3576.500 |
|
(b)
Trade payables |
16202.100 |
15031.500 |
14365.300 |
|
(c)
Other current liabilities |
8274.900 |
9392.800 |
6922.100 |
|
(d)
Short-term provisions |
189.000 |
129.100 |
149.500 |
|
Total
Current Liabilities (4) |
32114.500 |
31243.300 |
25013.400 |
|
|
|
|
|
|
TOTAL |
72455.600 |
76697.900 |
70795.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
48811.000 |
51028.900 |
32852.700 |
|
(ii)
Intangible Assets |
24.400 |
21.700 |
19.500 |
|
(iii)
Capital work-in-progress |
391.900 |
1518.900 |
11736.100 |
|
(iv) Intangible assets under development |
98.400 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
1677.400 |
1737.800 |
1747.800 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
315.900 |
2746.100 |
2552.500 |
|
(e)
Other Non-current assets |
3.900 |
0.000 |
63.600 |
|
Total
Non-Current Assets |
51322.900 |
57053.400 |
48972.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
10.000 |
80.000 |
|
(b)
Inventories |
13167.600 |
11639.700 |
13056.500 |
|
(c)
Trade receivables |
3249.300 |
3614.300 |
4907.200 |
|
(d)
Cash and cash equivalents |
393.300 |
1549.500 |
1231.100 |
|
(e)
Short-term loans and advances |
3427.500 |
2354.800 |
2065.000 |
|
(f)
Other current assets |
895.000 |
476.200 |
483.500 |
|
Total
Current Assets |
21132.700 |
19644.500 |
21823.300 |
|
|
|
|
|
|
TOTAL |
72455.600 |
76697.900 |
70795.500 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
37460.500 |
32871.200 |
30445.300 |
|
|
|
Other Income |
386.800 |
778.300 |
432.200 |
|
|
|
TOTAL (A) |
37847.300 |
33649.500 |
30877.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
12383.700 |
10677.300 |
11286.800 |
|
|
|
Purchases of Stock-in-Trade |
577.500 |
178.800 |
35.100 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(660.500) |
(873.500) |
(873.000) |
|
|
|
Employees benefits expense |
2398.800 |
2057.100 |
1767.800 |
|
|
|
Other expenses |
16741.800 |
14721.600 |
13108.700 |
|
|
|
Adjustment of Items Capitalised and Departmental Orders
for own consumption |
(57.800) |
(40.000) |
(171.200) |
|
|
|
Exceptional items |
1001.600 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
32385.100 |
26721.300 |
25154.200 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5462.200 |
6928.200 |
5723.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5073.900 |
4261.700 |
3267.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
388.300 |
2666.500 |
2455.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
3830.000 |
3035.100 |
2352.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(3441.700) |
(368.600) |
103.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(517.600) |
(111.800) |
32.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(2924.100) |
(256.800) |
70.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from Export of Goods on F.O.B basis |
6711.500 |
8011.800 |
4967.200 |
|
|
|
Interest Received |
7.300 |
6.700 |
6.200 |
|
|
|
Service Charges |
19.300 |
0.100 |
0.700 |
|
|
|
Dividend Received |
24.200 |
29.300 |
29.800 |
|
|
|
Commission Received on Corporate Guarantees |
10.300 |
14.500 |
0.000 |
|
|
|
Reimbursement of Expenses related to the Depository Receipt |
0.000 |
4.900 |
0.000 |
|
|
TOTAL EARNINGS |
6772.600 |
8067.300 |
5003.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7645.700 |
6063.300 |
5482.800 |
|
|
|
Components and Spare Parts |
942.900 |
675.400 |
315.400 |
|
|
|
Capital Goods |
140.500 |
375.000 |
1606.200 |
|
|
TOTAL IMPORTS |
8729.100 |
7113.700 |
7404.400 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(9.60) |
(0.84) |
0.23 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
3397.000 |
2298.400 |
3385.700 |
|
|
|
|
|
|
Cash generated from operations |
6482.700 |
10564.800 |
3944.300 |
|
|
|
|
|
|
Net cash generated from Operating Activities |
6439.700 |
10467.100 |
3865.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2015 |
30.09.2015 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
8804.000 |
8528.100 |
|
Total Expenditure |
|
7721.200 |
8127.500 |
|
PBIDT (Excl OI) |
|
1082.800 |
400.600 |
|
Other Income |
|
97.300 |
137.700 |
|
Operating Profit |
|
1180.100 |
538.500 |
|
Interest |
|
1299.600 |
1342.700 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(119.500) |
(804.400) |
|
Depreciation |
|
911.200 |
537.400 |
|
Profit Before Tax |
|
(1030.700) |
(1341.800) |
|
Tax |
|
(318.300) |
(420.600) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(712.400) |
(921.200) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(712.400) |
(921.200) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(7.81) |
(0.78) |
0.23 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
14.58 |
21.08 |
18.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.90) |
(0.50) |
0.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.28) |
(0.02) |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.00 |
2.26 |
1.94 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.66 |
0.63 |
0.87 |
STOCK
PRICES
|
Face Value |
Re.1/- |
|
|
|
|
Market Value |
Rs.11.95/- [BSE] |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particulars |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
305.400 |
305.400 |
305.400 |
|
Reserves & Surplus |
15143.800 |
14921.700 |
11659.000 |
|
Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
300.000 |
|
Net
worth |
15449.200 |
15227.100 |
12264.400 |
|
|
|
|
|
|
Long-term borrowings |
22957.000 |
25469.400 |
26002.700 |
|
Short term borrowings |
3576.500 |
6689.900 |
7448.500 |
|
CURRENT MATURITIES OF LONG-TERM DEBTS |
3385.700 |
2298.400 |
3397.000 |
|
Total
borrowings |
29919.200 |
34457.700 |
36848.200 |
|
Debt/Equity ratio |
1.937 |
2.263 |
3.004 |
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 |
30445.300 |
32871.200 |
37460.500 |
|
|
|
7.968 |
13.961 |
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 |
30445.300 |
32871.200 |
37460.500 |
|
Profit/ (Loss) |
70.500 |
(256.800) |
(2924.100) |
|
|
0.23% |
-0.78% |
-7.81% |
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 |
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 |
Yes |
|
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 |
Yes |
|
32 |
Litigations that the firm/promoter involved
in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10601997 |
06/11/2015 |
300,000,000.00 |
ICICI BANK LIMITED |
ZONAL OFFICE, 3A,
GURUSADAY ROAD, KOLKATA, WEST BENGAL - 700019, INDIA |
C69867166 |
|
2 |
10601999 |
06/11/2015 |
1,000,000,000.00 |
ICICI BANK LIMITED |
ZONAL OFFICE, 3A,
GURUSADAY ROAD, KOLKATA, WEST BENGAL - 700019, INDIA |
C69867687 |
|
3 |
10579926 |
23/09/2015 * |
1,400,000,000.00 |
AXIS BANK LIMITED |
A C MARKET BUILDING
3RD FLOOR, 1, SHAKESPEARE SARANI, KOLKATA, WESBENGAL - 700071, INDIA |
C67114207 |
|
4 |
10564941 |
11/04/2015 |
1,500,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, 2ND FLOOR,, RELIANCE HOUSE, 34, JAWARHARLAL NEHRU ROAD, KOLKATA,
WEST BENGAL - 700071, INDIA |
C51477891 |
|
5 |
10515804 |
30/07/2014 |
1,000,000,000.00 |
THE RATNAKAR BANK
LIMITED |
THAPPAR HOUSE
BRANCH, FIRST FLOOR, THAPAR HOUSE, |
C17003930 |
|
6 |
10514178 |
27/01/2015 * |
1,400,000,000.00 |
THE RATNAKAR BANK
LIMITED |
THAPAR HOUSE
BRANCH, FIRST FLOOR, THAPAR HOUSE, 25, BRABOURNE ROAD, KOLKATA, WEST BENGAL -
700001, INDIA |
C44128270 |
|
7 |
10490956 |
30/04/2014 |
3,000,000,000.00 |
INDUSIND BANK LIMITED |
INDUSIND BANK
LIMITED, SAVITRI TOWERS 3A UPPER WOOD STREET, KOLKATA, WEST BENGAL - 700017,
INDIA |
C03388691 |
|
8 |
10489910 |
28/06/2014 * |
5,500,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34, J L NEHRU ROAD, KOLKATA,
WEST BENGAL - 700071, INDIA |
C14295786 |
|
9 |
10467934 |
30/12/2013 |
2,000,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, 4, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL -
700001, INDIA |
B92649011 |
|
10 |
10467935 |
28/06/2014 * |
1,500,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, 4, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL -
700001, INDIA |
C12837845 |
|
11 |
10445936 |
03/09/2013 * |
1,500,000,000.00 |
ICICI BANK LIMITED |
ZONAL OFFICE, 2B,
GORKY TERRACE, KOLKATA, WEST BENGAL - 700017, INDIA |
B88592936 |
|
12 |
10413761 |
28/03/2013 * |
2,500,000,000.00 |
ICICI BANK LIMITED |
ZONAL OFFICE, 2B,
GORKY TERRACE, KOLKATA, WEST BENGAL - 700017, INDIA |
B73021792 |
|
13 |
10411806 |
28/03/2013 * |
2,500,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34, J. L. NEHRU ROAD, KOLKATA,
WEST BENGAL - 700071, INDIA |
B72588452 |
|
14 |
10356533 |
31/08/2012 * |
1,000,000,000.00 |
STATE BANK OF
HYDERABAD |
COMMERCIAL BRANCH,
TRINITY TOWERS, GROUND FLOOR, 83, TOPSIA ROAD, KOLKATA, WEST BENGAL -
700046, INDIA |
B58306622 |
|
15 |
10338450 |
31/08/2012 * |
2,000,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34, J. L. NEHRU ROAD, KOLKATA,
WEST BENGAL - 700071, INDIA |
B57764573 |
|
16 |
10307478 |
19/03/2012 * |
2,000,000,000.00 |
EXPORT-IMPORT BANK
OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B35384932 |
|
17 |
10261909 |
25/07/2011 * |
5,650,000,000.00 |
STATE BANK OF
INDIA (SECURITY AGENT) |
CORPORATE ACCOUNTS
GROUP, 34, JAWAHARLAL NEHRU ROAD, KOLKATA, WEST BENGAL - 700071, INDIA |
B17357641 |
|
18 |
10252604 |
08/03/2011 * |
1,000,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B09032707 |
|
19 |
10238338 |
08/03/2011 * |
2,500,000,000.00 |
EXPORT-IMPORT BANK
OF INDIA |
CENTRE ONE
BUILDING FLOOR 21, WORLD TRADE CENTRE |
B07595986 |
|
20 |
10184900 |
24/09/2009 |
1,650,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
A72736739 |
|
21 |
10176113 |
11/01/2014 * |
2,640,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA -400013, INDIA |
B96305198 |
|
22 |
10105621 |
10/04/2008 |
250,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
A37760816 |
|
23 |
10098395 |
12/11/2013 * |
11,635,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNTS
GROUP BRANCH, RELIANCE HOUSE, 2ND FLOOR, 34, J L NEHRU ROAD, KOLKATA,
WEST BENGAL - 700071, INDIA |
B91716225 |
|
24 |
10054996 |
04/05/2007 |
860,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
A16261414 |
|
25 |
90254672 |
15/06/2005 |
250,000,000.00 |
ICICI BANK LIMITED |
LANDMARK RECE
COURSE CIRCLE, VADODARA, GUJARAT - 390007, INDIA |
- |
|
26 |
80050957 |
31/03/2014 * |
3,450,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH
(CBB), 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR,, KOLKATA, WEST
BENGAL - 700071, INDIA |
C06997522 |
|
27 |
80051309 |
31/03/2014 * |
3,450,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH
(CBB), 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR,, KOLKATA, WEST
BENGAL |
C06999809 |
|
28 |
80036013 |
27/01/2015 * |
24,000,000,000.00 |
STATE BANK OF
INDIA AS LEAD BANK OF SBI CONSORTIUM |
CAG BRANCH, 2ND FLOOR,
RELIANCE HOUSE, 34, JAWARHARLAL NEHRU ROAD, KOLKATA, WEST BENGAL - 700071,
INDIA |
C44848653 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Term Loans From
Body Corporate (Rupee Loans) |
89.000 |
0.000 |
|
SHORT TERM BORROWINGS |
|
|
|
Commercial
Papers From a Scheduled Bank |
0.000 |
650.000 |
|
|
|
|
|
Total |
89.000 |
650.000 |
GENERAL
INFORMATION
Usha
Martin Limited (the ‘Company’) is a public limited company domiciled in India,
incorporated under the provisions of the Companies Act, 1956 and is listed on
two stock exchanges in India and its GDRs are listed on stock exchange in
Luxembourg. The Company is engaged in the manufacturing of speciality steel and
value added steel products. The Company caters to both domestic and
international markets.
REVIEW OF OPERATIONS
The
turnover for the year increased to Rs. 45611.000 Million on consolidated basis
and Rs. 37460.500 Million on standalone basis from Rs. 40738.300 Million and
Rs. 32871.200 Million respectively in the previous year. Despite there being
suboptimal business conditions for steel and mining industry, the Company could
achieve a growth of 12% and 14% respectively. However, operating profit reduced
on consolidated basis from Rs.7994.300 Million in previous year to Rs.7534.800
Million in the current financial year and on standalone basis from Rs.6928.100
Million to Rs.6463.800 Million. Consequently operating margins lowered to 16.5%
and 17.3% on consolidated and standalone basis respectively.
As
per decision of Hon’ble Supreme Court of India which de-allocated coal mines,
there was an additional levy of Rs.830.000 Million on the production of coal
since beginning of coal mining operations to 31st March, 2015. This, along with
other write downs on investment made in coal mines amounting to Rs.164.300
Million, has been shown as exceptional items. The net loss after tax was
Rs.2531.200 Million on consolidated basis and Rs.2924.100 Million on standalone
basis for the financial year 2014-15.
OUTLOOK AND BUSINESS
During
the year there has been a formation of central government with clear majority after
a long period of time in the past. This has ushered in positive hopes of
government taking bold initiatives for accelerating the process of recovery and
growth in business conditions with enduring sustainability.
However,
during the year the steel industry has witnessed lowest production growth in
the recent past and touching as low as 0.5%. The major segment which consumes
the Company’s product, i.e automobile, has also seen mixed conditions. During
the 2nd half of the year, the increased cheaper imports have also created new
threats for the industry.
These
difficult conditions in steel industry have also been felt in wire and wire
rope business as well across the global and in domestic markets. In September,
2014 the Hon’ble Supreme Court of India de-allocated the coal mines allotted
since 1993 and imposed additional levy @ Rs.295 per MT on the coal produced
since beginning to 31st March, 2015. As a result, the Company’s two coal mines
viz. Kathautia and Lohari coal mines were also de-allocated and the Company had
to incur Rs.830.000 Million on its’ coal production from beginning. Kathautia
coal mine was already operational whereas Lohari coal mine was yet to be made
operational.
As
a part of subsequent new policy initiatives, the Central Government decided to
allocate coal mines through e-auctions. The Company participated in these
auctions and successfully won Brinda and Sasai coal block in Jharkhand at a
price of Rs.1804 per MT. This coal block is expected to be commissioned for
production in financial year 2017-18. After completion of cost optimization
projects during the previous financial year, beneficiation and pellet plants
were under stabilization during the current financial year.
The
manufacturing unit of the Company at Nawalgang, Agra has been closed down and
appropriate steps are being taken to dispose off the surplus assets lying in
the said location.
No
material changes and commitments have taken place since close of the previous
financial year and till the date of this report which may significantly affect
the financial position of the Company adversely.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY OVERVIEW
BUSINESS CONFIGURATION
Usha
Martin is an integrated specialty steel and value added steel products Company,
having business locations across various parts of the world including through
its subsidiaries and/or joint ventures.
The
Company has state-of-art integrated steel plant near Jamshedpur (Jharkhand)
producing a wide range of specialty steel wire rods and bars, with captive iron
ore mine in Jharkhand. The other/auxiliary products include iron ore pellet,
coke, DRI, hot metal, pig iron, sinter, oxygen and power generation, primarily
for captive consumption. Until 31st March, 2015 the Company had coal mining
also at its’ Kathautia block which got de-allocated by the decision of Hon’ble
Supreme Court of India in September 2014. Under the new policy initiative of
fresh e-auctions, the Company participated in bid and successfully won Brinda
and Sasai Coal block in Jharkhand. The operations in this coal mine are likely
to commence in FY’18.
With
stabilization of projects like pellet, coke and additional DRI and power
generation set up to FY’14, the Company has strengthened cost model in its
steel business to increase competitiveness.
The
Company is one of the largest producers of specialty steel in India, catering
to requirements of automotive, railways, defence and general engineering
sectors.
The
steel products manufactured at Jamshedpur facilities were sold in the market to
the extent of 69% and balance 31% was for in-house production of value added
products such as wire ropes, wires, strands and bright bars at Ranchi,
Hoshiarpur, Chennai and Bangkok.
In
steel wire rope manufacturing, the Company is the largest in India and one of
the largest in the world. Its manufacturing plants are located at Ranchi and
Hoshiarpur in India, and in Thailand, Dubai and the UK overseas. The wide range
of wire ropes produced by the Company has applications in offshore oil
exploration, mining, levators, cranes,
bridges, infrastructure, construction, fishing and variety of general purposes.
Besides wire ropes, other value added products include cords, strands, wires,
bright bars and oil tempered wires. The Company has also a plant at Chennai to
manufacture bright bars.
The
global business of wire rope is supported by marketing, distribution and
rigging facilities at various locations in the USA, Europe and Asia. The
Company provides products and solutions for oil and gas sectors for anchoring,
drilling and mooring applications from its facilities at Aberdeen in UK.
Further, the Company has an RandD Centre in Italy. The Company has an in-house
machinery manufacturing facility at Ranchi for captive engineering requirements
as well as to cater to external demand in India and export markets.
Through
one of its wholly owned subsidiary in India, the Company also manufactures a
wide range of telecommunication cables meant for variety of applications and
caters to requirements of domestic and export markets.
The
strategy of integration places the Company distinctly in a unique position by
combining both ends of value chain, from iron ore mining to high value wire
ropes and further providing end use solutions on its key product applications.
In addition to providing benefits of quality, consistency and self-sufficiency
for principal raw materials, it provides captive markets for a sizeable portion
of the finished products, thereby de-risking both the businesses. Also it
enables the Company to aspire to become truly competitive across the entire
value chain of its chosen products.
STEEL BUSINESS
Despite
subdued steel market, the Company was able to achieve higher sale in rolled
product volumes. In line with Company’s strategy for strengthening its market
position, the Company successfully penetrated crankshaft segment in Commercial
Vehicles during the year. Developmental work for Car and 2 wheeler segments
where the
Company
has limited presence is being carried out.
The
Hon’ble Supreme Court of India by its’ order in September 2014 deallocated all
the coal mines allotted by the Government of India since 1993. The Company’s
two coal mines namely Kathautia coal block, which was in operations since 2010,
and another one namely Lohari Coal block which was yet to be developed, were
de-allocated. As per this order Kathautia coal mine was being operated by the
Company until 31st March 2015.
In
addition, by the said order of Hon’ble Supreme Court of India, an additional
levy of Rs. 295 per MT was imposed for the coal produced. Accordingly the
Company had to incur Rs.837.300 Crs of such additional levy on production of
entire quantity of coal at Kathautia mine from commencement of production in
2010 until 31st March, 2015.
Under
the new policy initiative of Central Government to allocate mineral assets
through e-auctions, the Company participated in bids to secure long term
security and availability of coal and successfully won mining rights for Brinda
and Sasai Coal block in Jharkhand at a price of Rs. 1804 per MT. The operations
in this coal mine are likely to commence in FY’18. Until commencement of new
coal mine the Company would source coal requirements from domestic market
and/or imports.
OPERATIONAL HIGHLIGHTS
The
Steel business achieved a higher sales turnover of Rs.29966.800 Million in the
current financial year against Rs.25283.600 Million in the previous year, up by
18.5%. The operating profit and margins however remained at Rs.4679.500 Million
at 15.6% during the year against Rs.5045.900 Million. At 20.0% in the previous
year. Further, there was an exceptional charge of Rs. 837.300 Million on
account of additional levy @ Rs .295 per MT on production of coal from
Kathautia coal mine since commencement of operations of coal mine to 31st
March, 2015, and write downs of Rs. 164.300 Million on assets and investments
made in de-allocated coal blocks.
Share
of Steel business stood at 66.1% of the Company’s gross level of activity and
59.1% of reported net turnover in the current financial year. During FY’15 the
export turnover of Steel business was Rs.2516.900 Million, which is 8.4% of
its’ turnover, against Rs. 2977.900 Million in the previous year.
WIRE ROPES AND SPECIALTY PRODUCTS BUSINESS\
Despite
subdued environment in domestic market, the Company was able to increase sales
in wire rope segment in domestic market. Higher volume in domestic rope market
enabled the Company to offset the decline in wire rope exports. Strong domestic
performance, product mix enrichment and cost control measures enabled the
Company to maintain margins despite pressure on topline.
Continuing
the focus on product mix enrichment, Company’s UK subsidiary manufactured first
reel of OCEANMAX in September 2014 which is a new product in the Company’s
portfolio. This product is targeted to cater to a segment where Company’s
presence was missing in past.
Global
markets provided an exceptional challenge in the year because of steep drop in
oil prices, which affected the demand; and sharp devaluation of currency in
many geographies, which affected the price. To mitigate the subdued demand in
oil and offshore segment, the Company plans to increase focus in other industry
segments and geographies less affected by currency devaluation.
At
global level, the WWR business has achieved during FY’15 gross production of
Wire Ropes and Conveyor Cords of 97,282 MT against 103,827 MT. The gross
production of Strands, Wires and Bright Bars was 164,400 in FY’ 15 against
161,363 MT in FY’ 14. Production of total Value Added Products was down by 1.3%
in FY’15 compared to that in the previous financial year.
On
standalone basis, the Wire and Wire Ropes business maintained turnover of
Rs.15151.400 Million in the current financial year against Rs.15192.900 Million
in previous year. However, the operating profit and margin were higher,
Rs.2004.400 Million at 13.2% during the year against Rs.1935.900 Million at
12.7% in previous year.
Share
of Wire and Wire Rope business stood at 33.4% of the Company’s gross level of
activity and 40.5% of reported net turnover in the current financial year on
standalone basis.
FOCUS AREAS AND NEW INITIATIVES
Main focus of the Company in current business
environment would be in:
·
Strengthening presence in domestic market
·
Exploring growth opportunities in geographies where
Company’s presence is currently limited
·
Continue the focus on cost control initiatives
·
Product mix enrichment on a continual basis and
providing better services to customers
STATEMENT OF STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER, 2015
(RS.
IN MILLION)
|
Particulars |
Quarter Ended |
Six Months Ended |
|
|
|
30.09.2015 (Unaudited) |
30.06.2015 (Unaudited) |
30.09.2015 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
8528.100 |
8804.000 |
17332.100 |
|
Other Operating Income |
0.000 |
0.000 |
0.000 |
|
Total Income from
operations (net) |
8528.100 |
8804.000 |
17332.100 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of Materials consumed |
3623.600 |
3620.400 |
7244.000 |
|
(b) Purchase of stock in trade |
250.500 |
9.700 |
260.200 |
|
(c) Changes in inventories of finished goods, work in progress
and stock in trade |
172.700 |
89.100 |
261.800 |
|
(d) Power and Fuel |
857.700 |
816.100 |
1673.800 |
|
(e) Consumption of Stores and Spare Parts |
609.800 |
608.500 |
1218.300 |
|
(f) Employee Benefits expenses |
579.600 |
609.500 |
1189.100 |
|
(g) Depreciation and amortisation expenses |
537.400 |
911.200 |
1448.600 |
|
(h) Other Expenses |
2033.600 |
1967.900 |
4001.500 |
|
Total Expenses |
8664.900 |
8632.400 |
17297.300 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
(136.800) |
171.600 |
34.800 |
|
Other Income |
137.700 |
97.300 |
235.000 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
0.900 |
268.900 |
269.800 |
|
Finance costs |
1342.700 |
1299.600 |
2642.300 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
(1341.800) |
(1030.700) |
(2372.500) |
|
Exceptional
item |
0.000 |
0.000 |
0.000 |
|
Profit/ Loss from Ordinary Activities before
tax |
(1341.800) |
(1030.700) |
(2372.500) |
|
Tax Expenses |
(420.600) |
(318.300) |
(738.900) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
(921.100) |
(712.400) |
(1633.600) |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
(921.100) |
(712.400) |
(1633.600) |
|
Paid- up
Equity Share Capital (Face value
of the share – Re. 1/-) |
305.400 |
305.400 |
305.400 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
-- |
|
Earnings per
share (before/ after extraordinary items) (of Re. 1/-
each) |
|
|
|
|
Basic |
(3.02) |
(2.34) |
(5.36) |
|
Diluted |
(3.02) |
(2.34) |
(5.36) |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
152741880 |
152649880 |
152741880 |
|
Percentage of Shareholding |
50.12% |
50.09% |
50.12% |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
-- |
-- |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of Shares |
151996900 |
152091900 |
151996900 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
49.88% |
49.91% |
49.88% |
|
|
Particulars |
Quarter
Ended 30.09.2015 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
8 |
|
|
Disposed of during the quarter |
8 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
STANDALONE STATEMENT OF ASSETS
AND LIABILITIES
|
Particulars |
30.09.2015 [Unaudited] |
|
|
A. EQUITY AND LIABILITIES |
|
|
|
1.
Shareholders’ Funds |
|
|
|
a] Share Capital |
305.400 |
|
|
b] Reserves and Surplus |
10025.100 |
|
|
Sub-total –
Shareholders’ funds |
10330.500 |
|
|
|
|
|
|
Equity Warrant application money pending
allotment |
300.000 |
|
|
|
|
|
|
2. Non-current
Liabilities |
|
|
|
a] Long term Borrowings |
24479.100 |
|
|
b] Deferred Tax Liabilities |
17.400 |
|
|
c] Other current liabilities |
3.300 |
|
|
d] Long term provisions |
262.300 |
|
|
Sub-total -
Non-current Liabilities |
24762.100 |
|
|
|
|
|
|
3. Current Liabilities |
|
|
|
a] Short term Borrowings |
6925.000 |
|
|
b] Trade Payables |
17317.900 |
|
|
c] Other Current Liabilities |
11267.500 |
|
|
d] Short Term Provision |
211.400 |
|
|
Sub-total - Current Liabilities |
35721.800 |
|
|
|
|
|
|
TOTAL - EQUITY
AND LIABILITIES |
71114.400 |
|
|
|
|
|
|
B ASSETS |
|
|
|
1. Non-current assets |
|
|
|
a] Fixed assets |
48697.200 |
|
|
b] Non-current investment |
1587.400 |
|
|
c] Long Term loans and Advances |
596.900 |
|
|
d] Other non-current assets |
2.100 |
|
|
Sub-total – Non- current assets |
50883.600 |
|
|
|
|
|
|
2.
CURRENT ASSETS |
|
|
|
|
Current Investments |
0.000
|
|
|
Inventories |
12735.800
|
|
|
Trade Receivables |
3093.300
|
|
|
Cash & Bank Balances |
24.200
|
|
|
Short Term loans and advances |
3486.600
|
|
|
Other Current Assets |
890.900
|
|
Sub-total – Current Assets |
20230.800
|
|
|
|
|
|
|
TOTAL - ASSETS |
71114.400 |
|
NOTES:
1) Pursuant to the requirement under Schedule II to the Companies Act, 2013 vide Notification dated 29th August, 2014, the Company, based on the external technical advice, identified components (significant parts) of the main asset having different useful lives as compared to the main asset and consequently revised the estimated useful lives of certain Plant and Machinery and Electrical Installation with effect from 1st April, 2015. Accordingly, the depreciation charge for the quarter and half year ended 30th September, 2015 is lower by Rs. 421.000 Million compared to the corresponding previous periods with corresponding impact on the loss from ordinary activities of the Company for respective periods.
2) During the period, the performance of the Company has been adversely affected, inter alia, due to shut down of Blast Furnaces at Steel Plant for 23 days, depressed market conditions and procurement of coal from outside agencies to meet its requirement for Steel Business, pursuant to de-allocation of the Company's Kathautia and Lohari coal blocks in the state of Jharkhand in the previous year.
3) Further, lower depreciation charge has led to reduction in valuation of closing Inventories as compared to previous year and consequential incremental charge by way of "Change in inventories of finished goods, work-in-progress, stock-in-trade and scrap" [Sl. No. 2(c)] with adverse impact on the results for the quarter and half year ended 30th September, 2015.
4) Tax expense comprises Deferred Tax and reversal of MAT Credit Entitlement.
5) The above results, after review by the audit committee, have been approved and taken on record by the Board of Directors at its meeting held on 4th November, 2015.
6) The Auditors of the Company have carried out a 'Limited Review' of the aforesaid financial results for the period ended 30th September, 2015 in terms of Clause 41 of the Listing Agreement with Stock Exchanges.
SEGMENT – WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
|
Particulars |
Quarter Ended |
Six Months Ended |
|
|
|
30.09.2015 (Unaudited) |
30.06.2015 (Unaudited) |
30.09.2015 (Unaudited) |
|
1. Segment Revenue |
|
|
|
|
a. Steel |
6888.000 |
7062.700 |
13950.700 |
|
b. Wire and Wire Ropes |
3296.200 |
3307.700 |
6603.900 |
|
c. Unallocated |
68.200 |
12.500 |
80.700 |
|
Total Segment Revenue |
10252.400 |
10382.900 |
20635.300 |
|
Less: Inter – segment revenue |
1724.300 |
1578.900 |
3303.200 |
|
Net Sales / Income
from Operations |
8528.100 |
8804.000 |
17332.100 |
|
|
|
|
|
|
2. Segment Results |
|
|
|
|
Profit/ (loss) before tax and interest |
|
|
|
|
a. Steel |
(428.000) |
73.000 |
(355.000) |
|
b. Wire and Wire Ropes |
460.400 |
274.500 |
734.900 |
|
c. Unallocated |
(0.500) |
(9.800) |
(10.300) |
|
Total |
31.900 |
337.700 |
369.600 |
|
Less: Finance Costs |
1342.700 |
1299.600 |
2642.300 |
|
Other Un-allocable Expenditure (Net of Un-allocable Income) |
31.000 |
68.800 |
99.800 |
|
Total Profit Before Tax |
(1341.800) |
(1030.700) |
(2372.500) |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
a. Steel |
39466.900 |
41068.600 |
39466.900 |
|
b. Wire and Wire Ropes |
7506.500 |
7525.100 |
7506.500 |
|
c. Unallocated |
782.500 |
805.800 |
782.500 |
|
Total |
47755.900 |
49399.500 |
47755.900 |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
(a) Claims against the Company not acknowledged as debt |
|
|
|
Disputed Tax and Duty for which the Company has preferred appeal before appropriate authorities |
|
|
|
Demand for Income Tax Matters |
194.000 |
194.000 |
|
Demand for Sales Tax & Entry Tax # |
606.300 |
323.200 |
|
Demand for Excise Duty and Service Tax # |
658.300 |
649.800 |
|
Demand for Customs Duty |
8.300 |
8.300 |
|
Outstanding Labour Disputes |
5.900 |
4.800 |
|
Disputed Electricity duty rebate matters which is subjudice |
55.200 |
55.100 |
|
Disputed Demand for Fuel Surcharge matter The writ petition filed by the Company before the Hon’ble High Court of Jharkhand at Ranchi was dismissed by Learned Single Judge vide order dated 8th May 2015. Based on legal opinion obtained, the Company has a strong case and is in a process of filing Letters Patent Appeal (LPA) before the Appellate Jurisdiction of the Hon’ble High Court of Jharkhand at Ranchi to contest the matter. |
163.700 |
163.700 |
|
Disputed Demand for Mining matter for which the Company has filed writ petition before The Hon’ble High Court of Jharkhand at Ranchi. |
703.300 |
194.000 |
|
# Out of the above, stay orders against demand for Sales Tax amounting to Rs. 23.700 (31st March, 2014 : Rs. 23.700) and demand for Excise Duty and Service Tax amounting to Rs. 640.400 (31st March, 2014 : Rs. 432.400) have been obtained by the Company. |
||
|
(b) Guarantees |
|
|
|
Corporate Guarantee Given by the Company to secure the financial assistance/accommodation extended to other Bodies Corporate |
943.500 |
1505.600 |
|
(c) Bills discounted with Banks including against Letter of Credit |
1716.600 |
1543.300 |
|
(d) In respect of the contingent liabilities, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any. In respect of matters, the cash outflows, if any, could generally occur during the validity period of the respective guarantees. The Company does not expect any reimbursements in respect of the above contingent liabilities. |
||
FIXED ASSETS:
·
Land and Site Development
·
Mining Lease and Development
·
Buildings
·
Plant and Equipment
·
Railway Sidings
·
Electrical Installation
·
Water Treatment and Supply Plant
·
Office Equipment
·
Furniture and Fixtures
·
Vehicles
·
Computer Softwares
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. 66.99 |
|
|
1 |
Rs. 101.78 |
|
Euro |
1 |
Rs. 73.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
HNA |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
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.