MIRA INFORM REPORT
|
Report No. : |
325706 |
|
Report Date : |
04.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
JAYASWAL NECO INDUSTRIES LIMITED (w.e.f. 05.09.2007) |
|
|
|
|
Formerly Known
As : |
JAYASWALS NECO LIMITED |
|
|
|
|
Registered
Office : |
F-8 MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
28.11.1972 |
|
|
|
|
Com. Reg. No.: |
11-016154 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 6386.331 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L28920MH1972PLC016154 |
|
|
|
|
TAN No.: [Tax Deduction and
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACJ3174F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer and seller of pig and sponge iron, billets, rolled products and engineering and automotive castings. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING and COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject was established in year 1972 and it offers mining facilities
of coal and iron these products includes pig iron, billets, rolled products and
sponge iron. It is well-established company having satisfactory track record. For the financial year ended 2015, company has reported declining in
topline growth by 4.31% and there is a sharp dip in profit of the company
during under a review. It is also to be noted that company’s business and financial risk
profile impact due to recent de-allocation of the company’s three coal blocks
by the Hon “ble Supreme Court (SC) by an order dated September 24, 2014. However, rating continue to favorably factor in the company’s status
as the third largest alloy steel player (long product category) in the
country supported by long track record of its promoters in the steel and
casting businesses and sound financial base of the company. Trade relations are reported as fair. Payment terms are reported to be
slow but correct. In view of long history of business operations backed by extensive
industry experience of promoters, the company can be considered for business
dealings at usual trade terms and condition. |
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 |
ICRA |
|
Rating |
Term Loan = BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk |
|
Date |
September 2014 |
|
|
|
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based facilities = A3 |
|
Rating Explanation |
Moderate degree of safety and high credit
risk. |
|
Date |
September 2014 |
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
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mr. Mukharjee |
|
Designation : |
Export Manager |
|
Contact No.: |
91-7104-237276 |
|
Date : |
02.06.2015 |
LOCATIONS
|
Registered Office / Corporate Office : |
F-8 MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra,
India |
|
Tel. No.: |
91-7104-237276/237471/2737472/236251/325682/325685/325684 |
|
Fax No.: |
91-7104-237583/236255 |
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E-Mail : |
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|
Website : |
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Manufacturing Facility: |
Located At:
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Branch: |
Located At:
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DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Basant Lall Shaw |
|
Designation : |
Director |
|
Address : |
Usha Sadan, 246, Plot R. S.S Marg, Civil Lines, Nagpur, Maharashtra
India |
|
Date of Birth/Age : |
03.08.1933 |
|
Date of Appointment : |
28.11.1972 |
|
Voter ID No.: |
MT/23/137/678368 |
|
DIN No.: |
00249729 |
|
|
|
|
Name : |
Mr. Arbind Jayaswal |
|
Designation : |
Managing director |
|
Address : |
Usha Sadan, 246, Plot R. S.S Marg, Civil Lines, Nagpur, Maharashtra
India |
|
Date of Birth/Age : |
26.11.1953 |
|
Date of Appointment : |
28.11.1972 |
|
Experience |
36 Years |
|
Voter ID No.: |
MT/23/137/678897 |
|
DIN No.: |
00249864 |
|
|
|
|
Name : |
Mr. Ramesh Jayaswal |
|
Designation : |
Managing director |
|
Address : |
Usha Sadan, 246, Plot R. S.S Marg, Civil Lines, Nagpur, Maharashtra
India |
|
Date of Birth/Age : |
02.02.1960 |
|
Date of Appointment : |
05.03.1983 |
|
Experience |
29 Years |
|
Voter ID No.: |
MT/23/137/678939 |
|
DIN No.: |
00249947 |
|
|
|
|
Name : |
Mr. Brajkishore Agrawal |
|
Designation : |
Director |
|
Address : |
51, New Colony, Bayaramji Town, Nagpur-440013, Maharashtra, India |
|
Date of Birth/Age : |
28.01.1949 |
|
Date of Appointment : |
10.08.1994 |
|
DIN No.: |
01223894 |
|
|
|
|
Name : |
Mr. Madan Mohan Vyas |
|
Designation : |
Director |
|
Address : |
K-53, Maker Tower, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra,
India |
|
Date of Birth/Age : |
07.10.1942 |
|
Date of Appointment : |
26.02.1998 |
|
DIN No.: |
00399012 |
|
|
|
|
Name : |
Mr. P K Bhardwaj |
|
Designation : |
Whole-time director |
|
Address : |
Plot No. 28 A, Flat No. 404, Rachana Sahil, T Point, Subhash Nagar,
Nagpur-440022, Maharashtra, India |
|
Date of Birth/Age : |
30.09.1954 |
|
Date of Appointment : |
25.02.2011 |
|
DIN No.: |
03451077 |
|
|
|
|
Name : |
Mr. Satyendra Narain Tejnarain Singh |
|
Designation : |
Director |
|
Address : |
Plot No. 5, Astha Behind Kale Mala, Pipeline Road, MIDC, Anandwali,
Nasik – 422013, Maharashtra, India |
|
Date of Birth/Age : |
25.05.19489 |
|
Date of Appointment : |
10.02.2014 |
|
DIN No.: |
00398484 |
|
|
|
|
Name : |
Mr. Darshan Kumar Sahanj |
|
Designation : |
Director |
|
Address : |
J 12/31, 3rd Floor, Rajouri Garden, New Delhi- 110027,
India |
|
Date of Birth/Age : |
30.01.1943 |
|
Date of Appointment : |
11.08.2014 |
|
DIN No.: |
00131269 |
|
|
|
|
Name : |
Mr. Raji Nathani |
|
Designation : |
Director |
|
Address : |
A-1/68, Sector – 55, Sushant Lok – II, Vill-Ghata, Tehsil – Sohna,
Dist Gurgaon-122011, Haryana, India |
|
Date of Birth/Age : |
22.10.1966 |
|
Date of Appointment : |
11.08.2014 |
|
DIN No.: |
06945777 |
|
|
|
|
Name : |
Mr. Pradip Kumar Das |
|
Designation : |
Nominee director |
|
Address : |
RBG Sitabuldi Bramch, Sanskrutik Sankul, Rani Jhansi Square, P.B No.
212, Nagpur – 440012, Maharashtra, India |
|
Date of Birth/Age : |
22.11.1959 |
|
Date of Appointment : |
16.08.2014 |
|
DIN No.: |
06593113 |
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh Mishra |
|
Designation : |
Company Secretary |
|
Address : |
Flat No. 203-206, Sanman Arcade, Hingna Arcade, Hingna Road, Near
Hingna Naka, Nagpur – 440016, Maharashtra, India |
|
Date of Birth/Age : |
21.01.1964 |
|
Date of Appointment : |
30.04.2014 |
|
PAN No.: |
AFDPM4265M |
|
|
|
|
Name : |
Mr. Mukharjee |
|
Designation : |
Export Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 31.03.2015
|
Category of Shareholder |
No. of
Shareholders |
Total Shareholding
as a % of Total No. of Shares |
|
|
|
As a % of (A+B+C) |
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
15158690 |
2.37 |
|
|
424144151 |
66.41 |
|
|
439302841 |
68.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
439302841 |
68.79 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
14306435 |
2.24 |
|
|
4086 |
0.00 |
|
|
4062 |
0.00 |
|
|
52745 |
0.01 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
14367328 |
2.25 |
|
|
|
|
|
|
124615890 |
19.51 |
|
|
|
|
|
|
23182797 |
3.63 |
|
|
35741099 |
5.60 |
|
|
1423108 |
0.22 |
|
|
596457 |
0.09 |
|
|
826651 |
0.13 |
|
|
184962894 |
28.96 |
|
Total Public shareholding (B) |
199330222 |
31.21 |
|
Total (A)+(B) |
638633063 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
638633063 |
100.00 |
Equity Share Break up (Percentage of Total Equity)
As on: 22.09.2014
|
Category |
Percentage |
|
Mutual Funds |
2.24 |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companies(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
0.10 |
|
Bodies corporate |
86.12 |
|
Directors or relatives of Directors |
4.90 |
|
Other top fifty shareholders |
1.13 |
|
Other |
5.51 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and seller of pig and sponge iron, billets, rolled products and engineering and automotive castings. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
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Auditors 1: |
|
|
Name : |
Chaturvedi and Shah Chartered Accountants |
|
Address : |
912,913, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AAAFC0662N |
|
|
|
|
Auditors 2: |
|
|
Name : |
Agrawal chhallani and Company Chartered Accountants |
|
Address : |
51, New Colony, Bayaramji Town, Nagpur - 440001, Maharashtra, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AACFA2753L |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary: |
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Enterprises in which
key Managerial personnel and their relatives are able to exercise significant
influence with whom transactions have taken place during the year: |
(U27300MH1987PLC045436)
(U51900MH1993PTC072686)
(U25202MH1989PTC053796)
(U40102WB1993PTC058437)
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs. 10000.000 Million |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
598625800 |
Equity Shares |
Rs.10/- each |
Rs. 5986.258
Million |
|
|
|
|
|
As on 31.03.2015
Authorised Capital : Not Available
Issued, Subscribed and Paid-up Capital : Rs.6386.300
Million
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 |
6386.300 |
5986.258 |
4971.762 |
|
(b) Reserves & Surplus |
15794.900 |
15252.422 |
13093.078 |
|
(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) |
22181.200 |
21238.68 |
18064.84 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
29584.800 |
24559.435 |
14411.367 |
|
(b) Deferred tax liabilities
(Net) |
2139.000 |
2033.988 |
1606.707 |
|
(c) Other long term
liabilities |
2.300 |
1.685 |
1.685 |
|
(d) long-term provisions |
269.500 |
269.495 |
269.495 |
|
Total
Non-current Liabilities (3) |
31995.600 |
26864.603 |
16289.254 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
8449.400 |
10005.621 |
7770.145 |
|
(b) Trade payables |
4321.100 |
3693.623 |
3578.579 |
|
(c) Other current liabilities |
4505.300 |
3209.556 |
2831.674 |
|
(d) Short-term provisions |
615.900 |
560.980 |
511.664 |
|
Total
Current Liabilities (4) |
17891.700 |
17469.780 |
14692.062 |
|
|
|
|
|
|
TOTAL |
72068.500 |
65573.063 |
49046.156 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
45385.600 |
14090.016 |
12175.921 |
|
(ii) Intangible Assets |
0.000 |
637.859 |
424.362 |
|
(iii) Capital work-in-progress |
0.000 |
18926.658 |
9516.801 |
|
(iv) Intangible assets under
development |
0.000 |
1394.630 |
848.951 |
|
(b) Non-current Investments |
0.000 |
0.001 |
0.001 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
10090.000 |
14352.527 |
12353.265 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
55475.600 |
49401.691 |
35319.301 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
149.600 |
144.680 |
143.517 |
|
(b) Inventories |
9245.900 |
7816.505 |
8018.506 |
|
(c) Trade receivables |
3144.600 |
4106.293 |
3018.541 |
|
(d) Cash and cash equivalents |
601.800 |
2545.701 |
1513.030 |
|
(e) Short-term loans and
advances |
3451.000 |
1558.193 |
1033.261 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
16592.900 |
16171.372 |
13726.855 |
|
|
|
|
|
|
TOTAL |
72068.500 |
65573.063 |
49046.156 |
PROFIT
and LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
30242.700 |
31610.512 |
25492.423 |
|
|
|
Other Income |
173.700 |
103.164 |
117.807 |
|
|
|
TOTAL (A) |
30416.400 |
31713.676 |
25610.230 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
16618.500 |
18783.290 |
15584.875 |
|
|
|
Purchases of Stock-in-Trade |
3045.900 |
1690.579 |
546.027 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
-417.700 |
(309.342) |
(675.022) |
|
|
|
Employees benefits expense |
1576.200 |
1474.592 |
1262.065 |
|
|
|
Exchange difference |
5.900 |
0.000 |
0.000 |
|
|
|
Exceptional items |
916.100 |
0.000 |
0.000 |
|
|
|
Other expenses |
5821.300 |
6061.978 |
5630.984 |
|
|
|
TOTAL
(B) |
27566.200 |
27701.097 |
22348.929 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2850.200 |
4012.579 |
3261.301 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1848.500 |
1733.814 |
1806.214 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1001.700 |
2278.765 |
1455.087 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
828.400 |
1157.244 |
966.836 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
173.300 |
1121.521 |
488.251 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
153.600 |
488.534 |
201.777 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
19.700 |
632.987 |
286.474 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
128.616 |
118.428 |
|
|
TOTAL EARNINGS |
|
128.616 |
118.428 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
2168.135 |
1000.723 |
|
|
|
Stores and Spares |
NA |
106.413 |
106.240 |
|
|
|
Capital Goods |
|
0.278 |
0.000 |
|
|
TOTAL IMPORTS |
|
2274.826 |
1106.963 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
0.03 |
6329.87 |
2864.74 |
|
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
1922.729 |
1778.017 |
|
Cash generated from operations |
NA |
NA |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
0.07 |
2.00 |
1.12 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
9.42 |
12.69 |
12.79 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.24 |
2.48 |
1.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.05 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.71 |
1.63 |
1.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.93 |
0.93 |
0.93 |
STOCK
PRICES
|
Face Value |
Rs.10 |
|
Market Value |
Rs. 7.20 |
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 |
4971.762 |
5986.258 |
6386.300 |
|
Reserves & Surplus |
13093.078 |
15252.422 |
15794.900 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
18064.840 |
21238.680 |
22181.200 |
|
|
|
|
|
|
long-term borrowings |
14411.367 |
24559.435 |
29584.800 |
|
Short term borrowings |
7770.145 |
10005.621 |
8449.400 |
|
Current Maturities of
Long-Term Debts |
1778.017 |
1922.729 |
0.000 |
|
Total
borrowings |
22181.512 |
34565.056 |
38034.200 |
|
Debt/Equity
ratio |
1.228 |
1.627 |
1.715 |
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 |
25492.423 |
31610.512 |
30242.700 |
|
|
|
24.000 |
(4.327) |
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 |
25492.423 |
31610.512 |
30242.700 |
|
Profit |
(1063.570) |
632.987 |
19.700 |
|
|
(4.17%) |
2.00% |
0.07% |
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 |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
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 |
UNSECURED LOAN
|
Particular |
31.03.2015 |
31.03.2014 (Rs.
in Million) |
|
Long-term
Borrowings |
|
|
|
Deferred sales tax loan |
|
391.712 |
|
Long-term maturities of finance lease |
|
130.863 |
|
Short-term
borrowings |
|
|
|
Deposits |
|
1516.972 |
|
Other loans and advances, others |
|
3161.495 |
|
Total |
NA |
5201.042 |
MANAGEMENT DISCUSSION
AND ANALYSIS: (As on 31.03.2014)
FINANCIAL
PERFORMANCE:
The Company performance for the year has improved
significantly vis-a-vis the previous year. The Gross turnover for the year is
Rs. 35343.500 Million which is around 24% higher than the previous year
Rs.28545.200 Million. Major contributors in increasing the Turnover in
comparison with previous year level are larger volumes of production and sales
of Pig Iron, Rolled Products and Billets in the Steel Plant Division due to
improved productivity. The Net Profit after tax for the year stood at Rs.
633.000 Million registering a growth of approx. 121% over the previous year Net
Profit of Rs. 286.500 Million.
During the year, the Networth of the Company has increased to Rs.21240.000 Million from Rs. 18060.000 Million in the previous year, mainly on account of preferential issue of shares, the consequent accretion to Securities Premium Account and increase in Net Profit.
Steel Plant Division:
Despite the challenging market scenario and facing several odds, the performance of this Division during the year was significantly better than the previous year. The total Segment revenue registered by this division during the year reached to Rs. 27962.300 Million as compared to Rs. 21312.500 Million of the previous year, registering an increase of around 31%.
During the year the steel division remained focused on increased production and sale of value added Finished Rolled products mainly in alloy steel, Steel Billets, Pig Iron and Sponge Iron and in captive power generation.
The capacity utilizations of the Steel Melt Shop and the Sponge Iron Plant during 2013-14 was at around 87% and 86% respectively as against around 70% and 81% in the previous year. The capacity utilization of the Rolling Mill also improved to about 81% in 2013-14 from 54% in 2012-13 due to improved demand from the end-user industries
The share of metallic i.e. pig iron and sponge iron sales, declined to about 35% in 2013-14, due to the increase in the sales of the finished long rolled products. Higher proportion of finished rolled products in the total sales mix has improved the extent of value addition and the company’s profitability.
Castings Division:
The Automotive and centrifugal castings sub divisions together account for 79% of the total foundry revenues and the remaining 21% revenues accrues from engineering and construction casting sub divisions.
During the year 2013-14 the slowdown in the demand from the end user industries affected the performance of the Iron and Steel Castings Division. Consequently, the production in Casting Division of the Company was lower by 13% as compared to previous year’s level. The Division continued its drive to focus on the key elements of better productivity, cost rationalization and high quality of castings.
Although the profit margins of the casting business improved in the Financial Year 2013-14 after witnessing a declining trend in the previous couple of years, the revenues from the foundry division reported a drop to Rs. 39250.000 Million from Rs. 4365.000 Million in the Financial Year 2012-13. The company’s foundry division has added automatic mounding lines in the automotive casting division (ACD). It is expected to result in increase in turnover of the foundry division in the current financial year.
The Centrifugal and Construction Castings sub Division are engaged in the production and sales of Sanitary Castings- Drainage Pipes and Fittings, Manhole Covers etc. This division was the market leader in this segment but due to the problems being faced by the Housing and Construction sector and with the availability of cheaper low grade alternative product the Cast Iron Pipes production and sales too have shrunk. Still the Company is hopeful that the production and sales of this division will go up in the near future.
Scheme of
Arrangement:
During the period, Nagpur Bench of Hon'ble High Court, Bombay, has approved the Scheme of Arrangement for the merger of Steel Division of Corporate Ispat Alloys Limited (CIAL) with the Company. The said Scheme became effective from 20th November, 2013 being the date of filing of the order of the Hon’ble High Court with Registrar of Companies, Maharashtra, Mumbai with the Appointed Date of 1st April, 2008. Pursuant to the Scheme, as Purchase Consideration the Company has issued 32649600 Equity Shares of Rs.10/- each credited as fully paid-up to the eligible shareholders of the CIAL.
Upon implementation of the Scheme, all the immovable and movable properties of the Steel Division of CIAL together with the liabilities and all the privileges, entitlements, benefits, rights and obligations and all other matters forming a part of and belonging to the Steel Division of CIAL with effect from the Appointed Date became an integral part of Company as set out in the Scheme of Arrangement.
Projects:
As the Members are aware, the Company with a view to rationalize costs, monetize the benefits of captive mines, increase the extent of value addition in the long product segment, is in the process of setting up of various facilities in the States of Chhattisgarh and Jharkhand.
The Company has also undertaken need based additional revamping and modification schemes to achieve smooth operations of some of the existing facilities at Raipur and enhancement in the capacity of the Automotive Casting Division at Nagpur. Briefly, the status of various
OUTLOOK:
The slowdown in growth which set in during FY 2012-13 continued in the year 2013-14. Many factors like political uncertainties, continued inflationary pressures, adverse fiscal situation, and administrative policy paralysis coupled with the influence of subdued external demand decelerated the GDP as well as the IIP growth during last fiscal. In FY 2013-14, India’s GDP increased by just 4.96% which is the lowest in a decade. The GDP growth rate fell sharply on the back of substantial moderation witnessed in the services sector. During the FY 2013-14 the economic activity continued to exhibit a slow recovery, resulting in marginal incremental growth in GDP during the year.
According to analysts, India’s GDP is poised to accelerate to 5.5 per cent in 2014-15 on the back of improved performance in industry and services but it may take some time for the country to reach its potential growth rate. India is the fourth largest crude steel producer in the world, and is one of the leading producers of pig iron and the largest producer of sponge iron in the world. Steel manufacturing infrastructure in the country is well developed a However, despite this growth in steel sector, the domestic consumption is yet to pick up. The consumption of per capita steel in the country stands at 55 kg per annum while the world average is 215 kg per annum. Consumption in rural sector is even low, and stands at close to 10 kg per annum.
Indian steel demand is also expected to track GDP growth supported by some easing in the interest rate cycle, and consequent push in demand of the automotive and auto components sector. Regulatory authorities are faced with a daunting task to contain spiraling inflation, to consolidate rupee against major foreign currencies, Law and order problems, stringent regulatory procedures and political pressures which culminate into disruption of the various industrial activities.
Current slowdown in pig iron and sponge iron segment is expected to continue in the immediate future as steel demand from the construction sector and the automobile sector, two of the major consumers of steel - remains relatively subdued. However, steel demand from construction sector is expected to pick up on the back of orders from large construction and infrastructure projects cleared by the Cabinet Committee on Investment (CCI). Also, with economic growth expected to pick up in the later years ( FY 2015-16 and onwards) and with the expected increase in demand from the automotive sector the steel and the consequent derived pig iron and sponge iron demand is expected to pick up. Further with the commencement of the new Steel Making facilities of the Company by the next year, the sale of pig iron and sponge iron would substantially reduce as the same would be actively consumed in upcoming Steel Making facility of the Company.
With the additional capacities being created by the Company in finished steel making in the long products segment, adoption of various austerity measures and other efforts; the Company is trying to improve its performance weathering the adverse conditions. On its captive Iron Ore and Coal Mines and other expansion projects becoming fully operational, the Company is slated to become one of the lowest cost producers in the Integrated Steel Plant category in the Country. Further the Company is also aided by the fact that its Integrated Steel Plant is located in the belt where large suppliers of iron ore are located nearby in the home State of Chhattisgarh and neighboring State of Orissa. Analysts are of the opinion that the GDP growth is expected to rise further to 6.0 per cent in 2015-16 as the gradual recovery in the advanced economies will bolster external demand and government actions are likely to remove some structural bottlenecks impeding industry and investment. The pick-up will be aided by implementation of stalled projects, debottlenecking of the mining sector etc. Sustained economic recovery will have to be led by improved investment and consumption.
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
|
Claims against company not acknowledged as debt |
1520.367 |
|
Guarantees |
508.187 |
|
Other money for which company is contingently liable |
6356.933 |
|
Total |
8385.487 |
INDEX OF CAHRGES:
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10541732 |
30/12/2014 |
980,000,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL
FINANCE BRANCH,, 5, SAI COMPLEX, BHARAT NAGAR, AMRAVATI ROAD,, NAGPUR,
MAHARASHTRA - 440033, INDIA |
C39817036 |
|
2 |
10537077 |
08/12/2014 |
50,000,000.00 |
UNION BANK OF
INDIA |
318, POST
OFFICE ROAD,, GANDHIBAGH BRANCH,, NAGPUR, MAHARASHTRA - 440002, INDIA |
C37223245 |
|
3 |
10485451 |
24/03/2014 |
1,330,000,000.00 |
PUNJAB NATIONAL
BANK |
SITABULDI,
MAHAJAN MARKET, NAGPUR, MAHARASHTRA - |
C00682559 |
|
4 |
10483785 |
30/08/2014 * |
928,600,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL FINANCE
BRANCH, 5, SAI COMPLEX,, BHARAT NAGAR, AMRAVATI ROAD,, NAGPUR, MAHARASHTRA -
440033, INDIA |
C19484039 |
|
5 |
10471710 |
09/01/2014 |
1,000,000,000.00 |
IDBI BANK
LIMITED |
IDBI TOWERWTC
COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B94070455 |
|
6 |
10445870 |
26/08/2013 |
860,000.00 |
AXIS BANK
LIMITED |
TRISHUL 3RD
FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT -
380006, INDIA |
B83482174 |
|
7 |
10430629 |
27/03/2014 * |
2,000,000,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL
FINANCE BRANCH,, NO.5, SAI COMPLEX, BHARAT NAGAR, AMRAVATI ROAD,, NAGPUR,
MAHARASHTRA - |
C01063478 |
|
8 |
10364490 |
14/01/2013 * |
1,000,000,000.00 |
STATE BANK OF
TRAVANCORE |
125, CENTRAL AVENUE,,
GANDHI PUTALA,, NAGPUR, MAHARASHTRA - 440032, INDIA |
B67261529 |
|
9 |
10358283 |
14/01/2013 * |
3,110,000,000.00 |
UNION BANK
CONSORTIUM |
GANDHIBAGH
BRANCH, 318 POST OFFICE ROAD, NAGPUR, |
B66958976 |
|
10 |
10344577 |
14/01/2013 * |
2,870,000,000.00 |
PUNJAB NATIONAL
BANK (LEAD BANK) |
SITABULDI,
MAHAJAN MARKET, NAGPUR, MAHARASHTRA - 440012, INDIA |
B66481649 |
Date of charge modification
FIXED ASSETS:
- Land
- Building
- Office building
- Plant and equipment
- Factory equipments
- Furniture and fixtures
- Vehicles
- Motor vehicles
- Office equipment
- Railway sidings
- Computer software
CMT REPORT (Corruption, Money Laundering and 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.64.17 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.25 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
41 |
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 and 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.