MIRA INFORM REPORT

 

 

Report No. :

331878

Report Date :

13.07.2015

 

IDENTIFICATION DETAILS

 

Name :

REMI EDELSTAHL TUBULARS LIMITED

 

 

Formerly Known As :

RALENDRA MECHANICAL INDUSTRIES LIMITED

 

 

Registered Office :

Remi House, Plot No. 11, Cama Industrial Estate, Goregaon (East), Mumbai – 400063, Maharashtra

Tel. No.:

91-22-40589800/ 888/26851998

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

19.08.1970

 

 

Com. Reg. No.:

11-014746

 

 

Capital Investment / Paid-up Capital :

Rs. 99.824 Million

 

 

CIN No.:

[Company Identification No.]

L28920MH1970PLC014746

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR13940D

 

 

PAN No.:

[Permanent Account No.]

AAACR0408G

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing of S.S. Pipes and Tubes and Wind Power Generation.

 

 

No. of Employees :

80 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1400000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having moderate track record.

 

Profitability of the company is under pressure. The company has achieved better growth in its sales turnover whereas has reported a loss from its operations during FY 15.

 

Trade relations are reported a fair. Business is active. Payment terms are reported to be slow but correct.

 

In the view of extensive experience of promoters and long track record of operations, 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

ICRA

Rating

Long Term Rating = “BB+” (Suspended)

Rating Explanation

Inadequate credit quality and high credit quality

Date

May 2015

 

Rating Agency Name

ICRA

Rating

Short Term Rating = “A4+” (Suspended)

Rating Explanation

Minimal degree of safety and very high credit risk

Date

May 2015

 

Reason for Suspended: - The Suspension follows ICRA’s inability to carry out a rating surveillance in the absence of the requisite information from the company.

 

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 31-03-2013.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Hanumant

Designation :

Assistant Manager

Contact No.:

91-22-40589800

Date :

10.07.2015

 

 

LOCATIONS

 

Registered / Corporate Office :

Remi House, Plot No. 11, Cama Industrial Estate, Goregaon (East), Mumbai – 400063, Maharashtra, India

Tel. No.:

91-22-40589800/ 888/26851998

Fax No.:

91-22-26852335/ 3868

E-Mail :

vsiyer@remigroup.com

remigrup@bom4.vsnl.net.in

Website :

www.remigroup.com

 

 

Factory 1 :

Plot No. N-211/1, M.I.D.C., Tarapur, Maharashtra, India

Tel. No.:

91-2525-270492 / 93

E-Mail :

tarapur@remigroup.com

 

 

Factory 2 :

Village Brahmanwel, Taluka Shakri, District Dhule, Maharashtra, India

 

 

Factory 3 :

Survey No.18.1/2,27/2,, Village - Shevali, Palghar East,
District -Thane, 401 404, Maharashtra, India

Tel. No.:

91-25-25605090/91

Fax No.:

91-25-25256675

E-Mail :

palghar@remigroup.com

 

 

Factory 4 :

Survey No 65 / 1, Village- Valiv (East), District Thane – 401208, Maharashtra, India

Tel. No.:

91-25-02452027/28

Fax No.:

91-25-02454493

E-Mail :

rei_works@remigroup.com

 

 

Branch Offices :

Located at:

 

Ø  Ahmedabad

Ø  Indore

Ø  Bengaluru

Ø  Kanpur

Ø  Chennai

Ø  Kolkata

Ø  Goa

Ø  Kochi

Ø  Gurgaon

Ø  Nagpur

Ø  Hyderabad

Ø  Delhi

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Vishwambhar C. Saraf

Designation :

Chairman

 

 

Name :

Mr. Rishabh R. Saraf

Designation :

Managing director

 

 

Name :

Mr. Rajendra C. Saraf

Designation :

Chairman

 

 

Name :

Mr. Kamal Kumar Dujodwala

Designation :

Chairman

 

 

Name :

Mr. Ritvik V. Saraf

Designation :

Managing director

 

 

Name :

Mr. Shankar Lal Jain

Designation :

Managing director

 

 

Name :

Mr. Gopikishan Biyani

Designation :

Managing director

 

 

Name :

Mr. Sandeep Shriya

Designation :

Managing director

 

 

KEY EXECUTIVES

 

Name :

Mr. Hanumant

Designation :

Assistant Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2015

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

2419330

24.24

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

3369520

33.75

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

61748

0.62

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

61748

0.62

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

5850598

58.61

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

 

 

Total shareholding of Promoter and Promoter Group (A)

5850598

58.61

(B) Public Shareholding

 

 

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

 

 

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

0

0.09

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

0

0.01

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

0

0.10

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

 

 

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

2059168

20.71

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

869650

14.72

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

566920

5.68

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

18640

0.19

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

12646

0.13

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

5994

0.06

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

3514378

41.29

Total Public shareholding (B)

3514378

41.39

Total (A)+(B)

9364976

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

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

0

0.00

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

0

0.00

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

9364976

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of S.S. Pipes and Tubes and Wind Power Generation.

 

 

Products :

ITC Code

Product Descriptions

730640.00

S. S. Welded Pipe

730410.01

S. S. Seamless Pipe

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Pipes

Countries :
  • Gulf countries
  • Germany

 

 

Imports :

 

Products :

Raw Material

Countries :

China

 

 

Terms :

 

Selling :

Cash, L/C, Credit and Cheque

 

 

Purchasing :

Cash, L/C, Credit and Cheque

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Reliance Industries

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Manufacturers

  • Siemens
  • Asin Paints
  • Cipla
  • Biocon
  • Asian Heart Institute
  • University of Delhi

 

Reference :

Apollo Hospital

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

80 (Approximately) 

 

 

Bankers :

Bank Name

State Bank of India

Branch

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

Facilities :

(Rs. In Million)

SECURED LOAN

As on

31.03.2015

As on

31.03.2014

LONG TERM BORROWING

 

 

Term Loans:

From State Bank of India:

 

 

Rupee Term Loan – II

[Secured by equitable mortgage of land and building at Tarapur, land at Dhule for Wind Power Project and hypothecation of Plant and Machinery and extension of hypothecation charge on the entire current assets of the Company consisting of Raw Materials, Stock-in-Process, Finished Goods, Stores and Spares, other Consumables, Book Debts, both Present and Future. The term loan is also guaranteed by two of the Directors.)

(Repayable in monthly installment of 1.500 Million each. Total number of installments -60 )

NA

35.178

Vehicle Loan

(Secured against hypothecation of the Vehicle purchased from such loans repayble in 36 EMIS of 0.063 Million each)

NA

0.394

SHORT TERM BORROWING

 

 

Loans Repayable on Demand:

From State Bank of India:

Cash Credit Facility

[Secured by first hypothecation charge on entire current assets consisting of raw material, semi-finished, finished goods and receivables. Extension of first chargeon entire fixed assets of the Company consisting of land, building, plant and machinery situated at Tarapur, District. Thane and at Brahmanwel, District. Dhule.

The Loans are also guaranteed by two of the Directors.)

NA

288.086

Total

NA

323.658

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sundarlal, Desai and Kanodia

Chartered Accountants

Address :

903, Arcadia, 195, N.C.P.A. Road, Mumbai – 400021, Maharashtra, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Associates:
  • Remi Process Plant and Machinery Limited
  • Remi Elektrotechnik Limited
  • Calplus Trading Private Limited
  • Magnificent Trading Private Limited
  • Aura Realfinvest Private Limited

 

 

Relatives of key management personnel and other related parties :
  • Rajendra Electrical Motor Industries

 

 

CAPITAL STRUCTURE

 

As on 31.03.2015

 

Authorised Capital : Not Available

 

Issued, Subscribed & Paid-up Capital : Rs. 99.824 Million

 

 

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10000000

Equity Shares

Rs. 10/- each

Rs. 100.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9582400

Equity Shares

Rs.10/- each

Rs. 95.824 Million

 

 

 

 

 

Note: 

 

Terms/ Rights Attached to Equity Shares:

 

The company has only one class of equity shares having par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend, if any, in Indian Rupees.

 

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

c) Details of Shareholders Holding more than 5% Shares of the Company:

 

Name of the Shareholder

No. of shares as on 31.03.2014

Vandana V. Saraf

485,972

Vishwambharlal Chiranjilal HUF

501,264

Minakshi R. Saraf

552,580

Rajendra Finance Private Limited

625,000

Remi Finance and Investment Private Limited

625,000

Remi Securities Limited

1,209,390

Hanuman Forging and Engineering Private Limited

1,600,000

 

d) There is no change in share Capital during the year.

 

 

LISTING DETAILS:

 

 

Subject Stock Code :

 

BSE : 513043



Stock Exchange Place :

The Stock Exchange, Mumbai

 

 

Listed Date :

 

Not Available

 

 

 

 

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

99.824

95.824

95.824

(b) Reserves & Surplus

374.792

360.414

370.832

(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)

474.616

456.238

466.656

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

218.397

241.951

248.422

(b) Deferred tax liabilities (Net)

63.429

72.696

78.206

(c) Other long term liabilities

25.336

7.482

7.538

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

307.162

322.129

334.166

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

440.996

369.961

270.324

(b) Trade payables

146.666

110.567

177.431

(c) Other current liabilities

87.843

124.897

103.210

(d) Short-term provisions

0.430

0.261

0.822

Total Current Liabilities (4)

675.935

605.686

551.787

 

 

 

 

TOTAL

1457.713

1384.053

1352.609

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

518.403

536.768

516.185

(ii) Intangible Assets

0.000

0.387

0.583

(iii) Capital work-in-progress

0.000

8.834

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

6.195

6.195

0.582

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

14.216

15.391

23.579

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

538.814

567.575

540.929

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

619.837

519.159

433.435

(c) Trade receivables

190.701

197.875

263.041

(d) Cash and cash equivalents

19.045

14.866

17.466

(e) Short-term loans and advances

87.248

83.803

96.679

(f) Other current assets

2.068

0.775

1.059

Total Current Assets

918.899

816.478

811.680

 

 

 

 

TOTAL

1457.713

1384.053

1352.609

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

1729.208

1223.663

1619.261

 

Other Income

8.105

23.255

20.743

 

TOTAL (A)

1737.313

1246.918

1640.004

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

1309.009

925.460

1236.995

 

Purchases of Stock-in-Trade

24.493

15.270

34.381

 

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

(45.621)

(69.815)

(30.134)

 

Employees benefits expense

79.394

67.548

68.709

 

Other expenses

264.395

223.310

210.103

 

TOTAL (B)

1631.670

1161.773

1520.054

 

 

 

 

 

Less

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

105.643

85.145

119.950

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

80.639

67.610

63.726

 

 

 

 

 

 

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

25.004

17.535

56.224

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

49.164

33.380

31.235

 

 

 

 

 

 

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

(24.160)

(15.845)

24.989

 

 

 

 

 

Less

TAX (H)

(7.206)

(5.427)

6.156

 

 

 

 

 

 

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

(16.954)

(10.418)

18.833

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD  (K)

129.194

139.612

125.779

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

NA

NA

5.000

 

Total (M)

NA

NA

5.000

 

 

 

 

 

 

Balance Carried to the B/S (J+K+L-M)

112.240

129.194

139.612

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 NA

226.596

267.895

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

NA

225.394

495.068

 

Components and Stores parts

NA

1.458

3.038

 

Fixed Assets

NA

60.372

16.563

 

TOTAL IMPORTS

NA

287.224

514.669

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

 

 

 

Basic

(1.76)

(1.09)

1.97

 

Diluted

(1.70)

(1.09)

1.97

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

NA

40.877

39.662

Cash generated from operations

NA

21.938

209.411

Net Cash from Operating Activities

NA

(45.768)

145.562

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

(0.98)

(0.85)

1.16

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

6.11

6.96

7.41

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(1.66)

(1.16)

1.85

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.05)

(0.03)

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.39

1.43

1.20

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.36

1.35

1.47

 

 

STOCK PRICES

 

 

Face Value

Rs.10.00

Market Value

Rs.25.55

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

95.824

95.824

99.824

Reserves & Surplus

370.832

360.414

374.792

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

466.656

456.238

474.616

 

 

 

 

long-term borrowings

248.422

241.951

218.397

Short term borrowings

270.324

369.961

440.996

Total borrowings

518.746

611.912

659.393

Debt/Equity ratio

1.112

1.341

1.389

 

 

 

 

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

1619.261

1223.663

1729.208

 

 

(24.431)

41.314

 

 

 

 

 

 

 

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

1619.261

1223.663

1729.208

Profit

18.833

(10.418)

(16.954)

 

1.16%

(0.85%)

(0.98%)

 

 

 

 

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)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

Yes

19

Major customers

Yes

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

Yes

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

LITIGATIONS DETAILS

 

LITIGATION DETAILS

Bench:- Bombay

Presentation Date : - 21/07/2014

Lodging No. :

CCL/693/2014

Failing Date:-

21/07/2014

Reg. No.

CC/18/2014

Reg. Date :-

15/09/2014

Petitioner:-

JORD INTWATIONAL PVT LTD 

Respondent:-

REMI EDELSTHAHI TUBULARS LTD.

Petn.Adv:-

LITTLE & CO. (645)

Resp. Adv.:

 

District:-

MUMBAI

Bench:-

SINGLE

Category:-

COUNTER CLAIM

Status:-

Pre-Admission

Stage:-

 

 

Act. :

Code of Civil Procedure 1909

 

 

OPERATIONS:

 

The company was impacted by the slowdown in the capital goods industry as well as the unprecedented depreciation of the INR vs the USD. Due to this, the company witnessed a sharp decline in its volumes as well as EBIDTA resulting in loss of Rs.15.800 Million during the year. However, the company is focused on product development of higher value added products for maintaining its strategic advantage in the industry over the long term.

 

The Company has installed and commissioned a brand new state of art Bright Annealing Furnace. In addition, the Ultra Sonic machine was upgraded to meet the requirements of the Nuclear Industry. An additional factory shed was also constructed. The total capital expenditure during the year was of Rs.120.000 Million. To part finance the Capital expenditure, one wind mill was sold, as it is not the core business of the Company.

 

With these new installations, the company is now capable to manufacture and supplies tubes for critical high pressure applications in the Power Industry (both Thermal/Nuclear), where selected manufacturers operate globally. The company is now able to produce the complete range of products for Thermal power plants and can develop further products for the Nuclear Power Industry. The company is hopeful that fresh capital investments in the Power (both Thermal/Nuclear), Oil and Gas, Refining and Petro- Chemical sectors will revive with the stabilization of the new Government during the current FY which would put company in strong position to encash its investments.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS:-

 

(a) Industry Structure and Development:

 

The growth in the product markets have shifted from the traditional focus on oil and petrochemical sector to the power sector. This shift stands to become more prominent in the next few years as the installation of nuclear power plants becomes more critical for the growth of the economy. The Stainless steel tube and pipe industry can be classified in the organized sector, in which the Company operates has witnessed a sharp growth in capacity over the past few years. There has been a revival in demand in the Fertilizer sector owing to the governments focus on increasing the agricultural produce.

 

(b) Opportunities and Threats:

With the new government coming in, we are hopeful that the economic environment will improve, customer sentiment will turn positive and the industry will see better growth. The growth in the power, both thermal & nuclear, fertilizer, oil and petroleum sector offer opportunities for the Company’s products. However, the pricing volatility of key raw material ingredients (such as nickel) can affect demand and usage patterns of user industry as well as affect the viability of major project investments. Apart from this, installation of LNG terminals can have a substantial contribution in the usage of stainless steel tubular products. The threat of dumping of secondary quality products and imposition of antidumping duties by the government on major raw materials can have adverse effect on the demand.

 

(c) Outlook:

The Stainless Steel Tubular industry has strong fundamentals and the management firmly believes that this is an essential product required during the further industrialization of the country. Its expansion programme which is catered to meeting the demand for value added products is going to give the Company a chance to participate in the specialized markets which are currently dominated with few manufacturers. The approvals received from users abroad will help in redevelopment of an export market which is currently negligible in the Company’s portfolio.

 

UNSECURED LOAN

(Rs. In Million)

Particulars

As on

31.03.2015

As on

31.03.2014

LONG TERM BORROWING

 

 

Inter Corporate Loans

NA

141.236

Deferred Sales Tax Liabilities

NA

65.143

SHORT TERM BORROWING

 

 

Inter Corporate Loans

NA

81.875

 

 

 

Total

NA

288.254

 

 

 

INDEX OF CHARGES:

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10323051

22/10/2011

90,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, 2ND FLOOR, THE ARCADE,
WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B27839406

2

90243194

22/10/2011 *

90,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, 2ND FLOOR, THE ARCADE,
WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B27841535

3

80002516

20/04/2009 *

1,217,900,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, 'THE ARCADE', 2ND FLOOR, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

A61330569

 

*Date of charge modification

 

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

Particulars

31.03.2015

31.03.2014

Bank Guarantees given by bankers on behalf of the Company

139.819

Guarantee given by the Company to Bankers on behalf

of associate Company

 

50.00

Bills discounted

 

56.448

Claim of Collector

 

35.347

Central Excise disputed in appeal

 

 
  1. Show cause notices pending for Adjudication.

 

7.094
  1. Appeal filed by Dept. in High Court against Tribunal order

 

20.724

Sales Tax disputed in appeal

 

--

In respect of custom Duty

 

3.301

Income Tax disputed in appeal

NA

0.019

 

 

FIXED ASSETS

 

TANGIBLE ASSETS:

 

  • Land
  • Factory Building
  • Plant and Machinery
  • Dies and Moulds
  • Electrical Installation
  • Office Equipments
  • Air Conditioners
  • Computers
  • Furniture and Fixtures
  • Vehicles

 

INTANGIBLE ASSETS

 

  • Computer Software

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                                       None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.37

UK Pound

1

Rs.97.65

Euro

1

Rs.70.43

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

SAN

 

 

Report Prepared by :

ART

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

3

--MARGINS

-5~5

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

31

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.