MIRA INFORM REPORT
|
Report No. : |
333157 |
|
Report Date : |
23.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
KALYANI STEELS LIMITED |
|
|
|
|
Registered
Office : |
Corporate Building, 2nd Floor, Mundhwa, Pune – 411036,
Maharashtra |
|
Tel. No.: |
91-20-66215000 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
28.02.1973 |
|
|
|
|
Com. Reg. No.: |
11-016350 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 218.644 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27104MH1973PLC016350 |
|
|
|
|
IEC No.: |
0388089237 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEK05371C |
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|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer of Thermal System Equipment’s and Automotive Components. |
|
|
|
|
No. of Employees
: |
81 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
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|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track. Rating takes consideration, healthy financial risk profile of the
company marked by decent profitability and comfortable gearing in FY15. Overall financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are
reported to be regular and as per commitments. The company can be considered normal for business dealings with usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities = (AA) |
|
Rating Explanation |
High degree of safety and very low credit
risk |
|
Date |
18.02.2015 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities = (A1+) |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk |
|
Date |
18.02.2015 |
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
31-03-2013.
INFORMATION DECLINED BY
|
Name : |
Ms. Kalpana Ghag |
|
Designation : |
Senior Finance Manager |
|
Contact No.: |
91-20-66215000 |
|
Date : |
21.07.2015 |
LOCATIONS
|
Registered/ Corporate Office : |
Corporate Building, 2nd Floor, Mundhwa, Pune – 411036,
Maharashtra, India |
|
Tel. No.: |
91-20-66215000 |
|
Fax No.: |
91-20-26821124 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory: |
Hospet Road, Ginigera, Taluka and District Koppal – 583228, Karnataka, India |
|
Tel. No.: |
91-8539-86603/ 08 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. B. N. Kalyani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. Sunita B. Kalyani |
|
Designation : |
Director |
|
Date of Birth/Age : |
18.04.1951 |
|
Date of Appointment : |
30.05.2015 |
|
|
|
|
Name : |
Mr. Amit B. Kalyani |
|
Designation : |
Director |
|
Date of Birth/Age : |
26.07.1975 |
|
Qualification : |
Graduated in Mechanical Engineering from Bucknell University, Pennsylvania, U.S.A. |
|
|
|
|
Name : |
S. M./ Kheny |
|
Designation : |
Director |
|
|
|
|
Name : |
S. S. Vaidya |
|
Designation : |
Director |
|
|
|
|
Name : |
B. B. Hattarki |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. U. Takale |
|
Designation : |
Director |
|
|
|
|
Name : |
Arun P. Pawar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. G. Patankar |
|
Designation : |
Director |
|
Date of Birth/Age : |
06.06.1956 |
|
Experience : |
35 Years |
|
Qualification : |
Bachelor's Degree in Science and he is a Chartered Accountant |
|
|
|
|
Name : |
Mr. R. K. Goyal |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Ms. Kalpana Ghag |
|
Designation : |
Senior Finance Manager |
|
|
|
|
Name : |
Mr. B. M. Amheshwari |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mrs. Deepati R. Puranik |
|
Designation : |
Company Secretary |
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 |
|
|
|
|
|
|
|
|
48355 |
0.11 |
|
|
26393701 |
60.46 |
|
|
26442056 |
60.57 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
26442056 |
60.57 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
451800 |
1.03 |
|
|
22256 |
0.05 |
|
|
14350 |
0.03 |
|
|
530805 |
1.22 |
|
|
1019211 |
2.33 |
|
|
|
|
|
|
3891177 |
8.91 |
|
|
|
|
|
|
10225380 |
23.42 |
|
|
1580823 |
3.62 |
|
|
494413 |
1.13 |
|
|
252067 |
0.58 |
|
|
241680 |
0.55 |
|
|
666 |
0.00 |
|
|
16191793 |
37.09 |
|
Total Public shareholding (B) |
17211004 |
39.43 |
|
Total (A)+(B) |
43653060 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
43653060 |
100.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Promoter and Promoter Group
|
Sl. No. |
Names of the
Shareholders |
No. of Shares
held |
As a % |
|
1 |
Ajinkya Investment and Trading Company |
32,61,822 |
7.47 |
|
2 |
Sundaram Trading and Investment Private Limited |
60,06,898 |
13.76 |
|
3 |
Ajinkyatara Trading Company Limited |
2,560 |
0.01 |
|
4 |
Lohagaon Trading Company Private Limited |
70,000 |
0.16 |
|
5 |
BF Investment Limited |
1,70,52,421 |
39.06 |
|
6 |
Mr. B N Kalyani |
1,118 |
0.00 |
|
7 |
Mr. Amit Kalyani |
31,694 |
0.07 |
|
8 |
Mrs. Sugandha J Hiremath |
6,785 |
0.02 |
|
9 |
Mrs. S B Kalyani |
7,743 |
0.02 |
|
10 |
Mrs. Sugandha Hiremath and Jay Hiremath |
1,015 |
0.00 |
|
|
|
|
|
|
|
Total |
2,64,42,056 |
60.57 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Public and holding more than 1% of the total number
of shares
|
Sl. No. |
Names of the
Shareholders |
No. of Shares
held |
As a % |
|
1 |
Sadguru Investment and Trading Company |
1601428 |
3.67 |
|
2 |
Gloxinia Investment and Finance Private Limited |
500000 |
1.15 |
|
3 |
Reliance Capital Trustee Co. Limited-A/c Reliance Capital Builder Fund-Sr |
445000 |
1.02 |
|
|
|
|
|
|
|
Total |
2546428 |
5.83 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Thermal System Equipment’s and Automotive Components. |
|
|
|
|
Brand Names : |
-- |
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|
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|
Agencies Held : |
-- |
|
|
|
|
Exports : |
Not Divulged |
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|
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Imports : |
Not Divulged |
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|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
81 (Approximately) |
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Bankers : |
· Union Bank of India · Canara Bank · HDFC Bank Limited · State Bank of India · Axis Bank Limited · The Hong Kong and Shanghai banking Corporation Limited · Banking Corporation Limited |
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|
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Facilities : |
|
||||||||||||||||||||||||
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. G. Bhaghwat Chartered Accountants |
|
Address : |
Suite No. 2, (Orchard”, Dr. Pai Marg, Baner, Pune – 411045, Maharashtra, India |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
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Associates Companies : |
· Kalyani Mukand Limited · Lord Ganesha Minerals Private Limited · Hospet Steels Limited |
|
|
|
|
Joint Venture : |
Hospet Steels Limited |
|
|
|
|
Companies
under Common Control : |
· Bharat Forge Limited · Kalyani Carpenter Special Steels Private Limited · Kalyani Investment Company Limited · BF Investments Limited |
|
|
|
|
Other Related Party
: |
India International Infrastructure Engineers Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
95,000,000 |
Equity Shares |
Rs. 5/- each |
Rs. 475.000 Million |
|
3,010,000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 301.000 Million |
|
2,400,000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 24.000 Million |
|
|
|
|
|
|
|
Total |
|
Rs. 800.000
Million |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43,759,380 |
Equity Shares |
Rs. 5/- each |
Rs. 218.797 Million |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43,653,060 |
Equity Shares |
Rs. 5/- each |
Rs. 218.265 Million |
|
106,320 |
Add : Forfeited Equity Shares (amount paid up) |
|
Rs. 0.379 Million |
|
|
|
|
|
|
|
Total |
|
Rs.
218.644 Million |
(a) Terms / Rights attached to Shares:
Equity Shares:
The Company has only one class of Equity Shares having at par value of ` 5/- per share. Equity Shares are pari-passu in all respects and each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.
In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.
(b) The Company does not have any Holding Company or any Subsidiary Company.
(c) Details of shareholders holding more than 5% Shares in the Company:
Equity Shares:
|
|
As at 31st March, 2015 |
As at 31st March, 2014 |
||
|
Name of
Shareholders |
Number
of Shares |
% holding |
Number
of Shares |
% holding |
|
Equity Shares of
Rs.5/- each fully paid |
|
|
|
|
|
Ajinkya Investment and Trading Company |
3,261,822 |
7.47 |
3,261,822 |
7.47 |
|
Sundaram Trading and Investment Private Limited |
6,006,898 |
13.76 |
5,691,198 |
13.04 |
|
BF Investment Limited |
17,052,421 |
39.06 |
17,052,421 |
39.06 |
(d) The Company has not reserved any shares for issue under options and has not entered into any contracts /commitments for the sale of shares /disinvestment.
(e) During the period of five years immediately preceding the date of Balance Sheet, the Company has not issued any shares without payment being received in cash nor issued any bonus shares and no shares were bought back.
(f) The Company has not issued any securities, which are convertible into Equity / Preference Shares of the Company.
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 |
218.644 |
218.644 |
218.644 |
|
(b) Reserves & Surplus |
4540.794 |
3759.988 |
3327.335 |
|
(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) |
4759.438 |
3978.632 |
3545.979 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
1570.564 |
1266.804 |
1251.573 |
|
(b) Deferred tax liabilities (Net) |
516.864 |
436.153 |
382.751 |
|
(c)
Other long term liabilities |
918.696 |
918.696 |
795.016 |
|
(d)
long-term provisions |
9.715 |
2.383 |
5.794 |
|
Total
Non-current Liabilities (3) |
3015.839 |
2624.036 |
2435.134 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
249.181 |
584.078 |
266.224 |
|
(b)
Trade payables |
2099.206 |
2445.821 |
1513.39 |
|
(c)
Other current liabilities |
705.623 |
550.903 |
516.779 |
|
(d)
Short-term provisions |
12.748 |
161.649 |
82.8 |
|
Total
Current Liabilities (4) |
3066.758 |
3742.451 |
2379.193 |
|
|
|
|
|
|
TOTAL |
10842.035 |
10345.119 |
8360.306 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
4412.944 |
3390.49 |
3371.435 |
|
(ii)
Intangible Assets |
11.131 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
114.206 |
81.848 |
129.099 |
|
(iv) Intangible assets under development |
20.345 |
18.825 |
14.243 |
|
(b) Non-current
Investments |
768.245 |
311.56 |
487.3 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
96.880 |
921.04 |
575.901 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
5423.751 |
4723.763 |
4577.978 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1560.566 |
1709.306 |
1282.633 |
|
(c)
Trade receivables |
3276.402 |
3316.25 |
1794.718 |
|
(d)
Cash and cash equivalents |
48.845 |
167.962 |
89.578 |
|
(e)
Short-term loans and advances |
421.696 |
363.924 |
522.067 |
|
(f)
Other current assets |
110.775 |
63.914 |
93.332 |
|
Total
Current Assets |
5418.284 |
5621.356 |
3782.328 |
|
|
|
|
|
|
TOTAL |
10842.035 |
10345.119 |
8360.306 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12266.196 |
11159.881 |
8090.681 |
|
|
|
Other Income |
27.128 |
117.922 |
71.545 |
|
|
|
TOTAL (A) |
12293.324 |
11277.803 |
8162.226 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
5708.966 |
5884.141 |
4312.678 |
|
|
|
Purchases of Stock-in-Trade |
71.935 |
83.921 |
104.828 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
70.122 |
(-382.001) |
148.472 |
|
|
|
Employees benefits expense |
664.150 |
580.001 |
378.168 |
|
|
|
Other expenses |
4080.096 |
3707.564 |
2380.286 |
|
|
|
TOTAL (B) |
10595.269 |
9873.626 |
7324.432 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1698.055 |
1404.177 |
837.794 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
147.740 |
170.023 |
224.844 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1550.315 |
1234.154 |
612.950 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
310.156 |
339.563 |
235.628 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1240.159 |
894.591 |
377.322 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
407.020 |
308.723 |
138.644 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
833.139 |
585.868 |
238.678 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY OF FOB |
332.039 |
242.560 |
267.555 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
|
|
|
|
|
- Coke / Coke Fines |
1824.636 |
2183.597 |
804.818 |
|
|
|
- Coal |
117.546 |
122.935 |
0.000 |
|
|
|
- Ferro Alloys |
327.949 |
247.710 |
154.874 |
|
|
|
Goods Traded in : |
|
|
|
|
|
|
- Coal |
64.623 |
0.000 |
0.000 |
|
|
|
- Coal Fines |
0.000 |
76.671 |
0.000 |
|
|
|
Capital Goods |
363.239 |
17.212 |
269.870 |
|
|
TOTAL IMPORTS |
2697.993 |
2648.125 |
1229.562 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
19.09 |
13.42 |
5.47 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long-Term Borrowings |
366.514 |
211.992 |
183.333 |
|
|
|
|
|
|
Cash Generated from Operations |
1421.426 |
669.534 |
1385.814 |
|
|
|
|
|
|
Net Cash generated from Operating Activities |
1141.644 |
392.942 |
1321.173 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
6.79 |
5.25 |
2.95 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
13.84 |
12.58 |
10.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.48 |
9.01 |
4.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.22 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.46 |
0.52 |
0.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77 |
1.50 |
1.59 |
Total Liability = Short-term Debt + Long-term Debt + Current Maturities
of Long-term debts
STOCK
PRICES
|
Face Value |
Rs.5.00/- |
|
|
|
|
Market Value |
Rs.108.40/- (BSE) |
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 |
218.644 |
218.644 |
218.644 |
|
Reserves & Surplus |
3327.335 |
3759.988 |
4540.794 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
3545.979 |
3978.632 |
4759.438 |
|
|
|
|
|
|
Long-term borrowings |
1251.573 |
1266.804 |
1570.564 |
|
Short term borrowings |
266.224 |
584.078 |
249.181 |
|
Current Maturities of
Long-Term Borrowings |
183.333 |
211.992 |
366.514 |
|
Total
borrowings |
1701.130 |
2062.874 |
2186.259 |
|
Debt/Equity
ratio |
0.480 |
0.518 |
0.459 |
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 |
8090.681 |
11159.881 |
12266.196 |
|
|
|
37.935 |
9.913 |
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 |
8090.681 |
11159.881 |
12266.196 |
|
Profit |
238.678 |
585.868 |
833.139 |
|
|
2.95% |
5.25% |
6.79% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
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 |
No |
|
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 |
10553648 |
30/03/2015
* |
652,000,000.00 |
BANK OF
BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, MANTRI COURT, 39, AMBEDKAR ROAD, PUNE - 411001,
MAHARASHTRA, INDIA |
C51311652 |
|
2 |
10534932 |
13/02/2015
* |
805,086,536.00 |
THE
HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED |
AMAR AVINASH
CORPORATE PLAZA, 5TH FLOOR, SURVEY |
C45330594 |
|
3 |
10426953 |
13/05/2013 |
580,000,000.00 |
BANK OF
BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, PUNE, MANTRI COURT, 39, AMBEDKAR ROAD, PUNE -
411001, MAHARASHTRA, INDIA |
B75559815 |
|
4 |
80007336 |
30/07/2012
* |
3,750,000,000.00 |
BANK OF
BARODA (LEAD BANK) |
CORPORATE
FINANCIAL SERVICES BRANCH, PUNE, MANTRI COURT, 39, AMBEDKAR ROAD, PUNE -
411001, MAHARASHTRA, INDIA |
B56393572 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
SHORT TERM BORROWINGS |
|
|
|
Foreign Currency Term Loans from Banks, under a buyer’s line of credit for Import of Goods |
249.181 |
577.374 |
|
Sales Bill Discounting |
0.000 |
6.660 |
|
Deposits |
0.000 |
0.044 |
|
|
|
|
|
Total |
249.181 |
584.078 |
THE YEAR IN
RETROSPECT:
In spite of the challenging year with respect to demand from Auto Sector, which happened to be one of the major customers for Company's products, the Company was able to increase the operational levels and achieved gross sales of Rs. 15.459 Million against Rs.13.979 Million in the previous year, representing growth of 10.58%. The Profits before Tax increased to Rs.1.240 Million, against Rs. 0.895 Million in the previous year, representing growth of 38.54%.The change in the product mix supported by improvement in operational efficiencies and benefits derived from cost reduction enabled the Company to achieve better results.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
As per IMF, World GDP growth remained almost constant at 3.4% in 2014 as compared to that in 2013. The growth forecast for near future is slightly optimistic with World GDP expected to grow at 3.5% in 2015 and accelerate further to 3.8% in 2016.
ADVANCED ECONOMIES
IMF has projected a sharp increase in Advanced Economies in 2015 based on benefit accrued from lower oil prices – which are expected to remain subdued in near future.
Growth in the United States is projected to pick up in 2015 & 2016, supported by gradual increase in domestic demand supported by lower oil prices, fiscal adjustments and continued support from monetary policy.
After weak 2014, growth in the Euro area is showing signs of picking up, supported by lower oil prices, low interest rates, and a weaker Euro.
Growth in Japan is also projected to pick up, sustained by a weaker Yen and lower oil prices.
EMERGING MARKETS AND
DEVELOPING ECONOMIES
In case of Emerging Markets & Developing Economies' group as a whole, GDP growth is expected to slow down from 4.6% in 2014 to 4.3% in 2015. This is primarily due to subdued prospects of some large emerging market economies and weaker activity in some major oil exporters because of the sharp drop in oil prices.
The authorities in China are now expected to put greater weight on reducing vulnerabilities from recent reckless credit and investment growth. China is expected to witness a slowdown in investment, particularly in real estate.
The outlook for Brazil is affected by a drought and weak private sector sentiment.
The growth forecasts for Russia reflect the economic impact of sharply lower oil prices and increased geopolitical tensions.
For commodity exporters, lower oil and other commodity prices are projected to take a toll on growth.
However, for oil importing countries such as India, the current decrease in oil price means reduced inflation and more room to strengthen fiscal position.
INDIAN ECONOMY
As per Ministry of Statistics and Programme Implementation (MoSPI), Government of India's Advance Estimates (AE), Indian Gross Value Added (GVA) grew by 7.5% in FY 2014-15 as compared to FY 2013-14.
WORLD STEEL INDUSTRY
In 2014, World Crude Steel production reached 1,661.5 Million MTs, with a growth of 1.2% over that in 2013.
All numbers are in Mil Tonnes except percentages.
China, the leading producer of steel, contributed 49.5% of the global output at 822.7 Million MTs in 2014, showing a 0.9% annual growth over previous year.
The European Union (EU) recorded an increase of 1.7% over 2013, producing 169.2 Million MTs of crude steel.
Production in Japan increased marginally by 0.1% y-o-y to 110.7 Million MTs.
United States produced 88.3 Million MTs of crude steel, which is 1.6% higher than its production level a year earlier.
In 2014, India's crude steel production increased by 2.3% y-o-y to 83.2 Million MTs.
According to World Steel Association (WSA), Chinese steel demand in 2014 saw negative growth for the first time since 1995 due to the government's rebalancing efforts that had a major impact on the real estate market. This situation is likely to remain unchanged in the short term and Chinese steel use will continue to record negative growth of 0.5% in both 2015 and 2016.
On the back of negative demand growth in China, which is the biggest steel consumer, WSA has projected global steel demand growth of 0.5% in 2015 and 1.4% in 2016.
Globally, because of the lower oil prices, investments in oil industry are reduced, which in turn has reduced steel demand from the sector.
GLOBAL CRUDE STEEL
CAPACITY UTILISATION
Global steel industry still suffers from excess capacity and the situation has worsened in 2014 as compared to 2013.
The average capacity utilisation in 2014 fell to 76.7% as compared to 78.4% in 2013.
INDIAN STEEL INDUSTRY
As per World Steel Association, crude steel production growth in India has slowed down from 5.2% in CY 2013 to 2.3% in CY 2014.
However, going forward World Steel Association is optimistic about India's apparent Steel demand growth which is expected to be 6.2% in CY 2015 and 7.3% in CY 2016. Although India's steel demand is expected to increase, it is yet to be seen whether projections of WSA can really be reached.
On the supply side, there are many players who are having serious expansion plans adding to the overall capacity.
Also, with a stable Government at the center, industry is optimistic about a revival in the overall economy and hence, in steel industry in the coming years.
RAW MATERIAL PRICES TREND
IRON ORE
After declaring ban on illegal mining in 2011, the Supreme Court, in April, 2013, permitted re-opening of Category "A" and Category "B" mines. The Apex Court also issued directions for cancellation of leases of 512 Category "C" mines.
The Supreme Court further ordered to auction these Category "C" mines to end-users and directed the State Government to prepare and submit a scheme for auction and submit the same for its approval.
Following the directive from Supreme Court, the State Government has appointed CRISIL for developing the auction methodology of iron ore mines. Based on the report from CRISIL, State Government has submitted an Affidavit in the Supreme Court about the methodology of auction and is awaiting approval / order on the same.
The State Government has also entrusted work relating to getting details of reserves of 15 iron ore mines with Mineral
Exploration Corporation Limited (MECL), who has submitted its report to State Government.
At present, only 18 mines from Category "A" including two mines of NMDC and 9 mines from Category "B" are operational.
Overall, in FY 2014-15, iron ore lumps and fines prices in Karnataka softened because of global price correction, coupled by import of Iron Ore by major players in the region.
COKING COAL AND COKE
Global Coking Coal prices have receded due to lower consumption by China due to its slowing economy.`
Also, a slowing Chinese economy has resulted in lower demand for Coke which manifested in lower Coke prices.
Going forward, it is yet to be seen whether current levels of Coking Coal & Coke prices are sustainable in the long run.
INDUSTRY PROFITABILITY OUTLOOK
FY 2014-15 has been a mixed bag for steel makers with marginal softening of raw material prices, fluctuating (INR/USD) exchange rate and a slow steel demand growth.
Although, on the input side, the raw material prices are expected to be subdued, the steel industry faces multiple challenges on the output side:
_ Chinese over capacity resulting into substantial increase in Chinese exports into India - resulting in pressure on domestic steel prices
_ Slow pick-up in steel demand in the domestic market - making it difficult to improve capacity utilization
_ Increased domestic rail logistics costs for Iron ore and coal - resulting in higher cost of landed raw material. Also, the import duty on coke has been increased, which will negatively affect the steel companies importing coke.
Hence, it is becoming more and more important to focus on cost reduction to remain competitive in current market and to maintain margins.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
Claims against the Company not acknowledged as debts |
2.719 |
2.719 |
|
Excise & Service Tax Demands - Matter under dispute |
25.128 |
29.484 |
|
Customers' Bill Discounting |
411.325 |
547.855 |
|
Iron Ore Supplier - Rate Difference Claim - Disputed |
255.199 |
255.199 |
|
Reimbursement for Forest Development Tax on Iron Ore claimed by supplier |
33.487 |
33.487 |
|
Others |
1.404 |
1.404 |
FIXED ASSETS:
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Office Equipment
· Furniture and Fixtures
· Vehicles
Intangible Assets
· Software
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.53 |
|
|
1 |
Rs.99.19 |
|
Euro |
1 |
Rs.69.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
SUP |
|
|
|
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
ARC |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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.