MIRA INFORM REPORT
|
Report No. : |
321721 |
|
Report Date : |
09.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
PRAKASH STEELAGE LIMITED |
|
|
|
|
Registered
Office : |
701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai – 400
026, Maharashtra |
|
Tel. No.: |
91-22-66134500 |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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|
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Date of
Incorporation : |
09.05.1991 |
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|
|
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Com. Reg. No.: |
11-061595 |
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Capital Investment
/ Paid-up Capital : |
Rs.175.000
million |
|
|
|
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CIN No.: [Company Identification
No.] |
L27106MH1991PLC061595 |
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|
|
|
IEC No.: |
Not Available |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP07782F |
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|
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PAN No.: [Permanent Account No.] |
AAACP6673K |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the manufacturing of seamless and welded stainless tubes and U-tubes |
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No. of Employees
: |
700 (Approximately) |
RATING & 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 |
|
Maximum Credit Limit : |
USD 5100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established company having satisfactory track. The company
possesses an above average financial profile marked by healthy networth, and
moderate gearing along with working capital intensive operations. Management has
reported an improvement in its sales volume during FY 14. Moreover, the
management has recently had an announcement regarding transfer of its
seamless stainless steel tubes and pipes business in a new entity, which will
be formed in joint venture with M/S Tubacex Inc, the transaction is expected
to close in the first quarter of 2015-16 subject to regulatory approvals and
certain closing conditions. The ratings also
take into consideration the susceptibility of its profitability to volatility
in prices of inputs and in foreign exchange rates. However, trade
relations are fair. Business is active. Payment terms are reported as usually
correct. In view of
established market position, the subject can be considered for business
dealings at 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.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: BBB |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
May 04, 2015 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A3+ |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
May 04, 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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. Surendra Tiwari |
|
Designation : |
DGM – Finance |
|
Contact No.: |
91-22-66134500 |
LOCATIONS
|
Registered Office/ Corporate Office : |
701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai –
400 026, Maharashtra, India |
|
Tel. No.: |
91-22-66134500 |
|
Fax No.: |
91-22-66134599 |
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E-Mail : |
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Website : |
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Factory 1 : |
Survey No.46/1, Parjai Road, Village: Kherdi, Silvassa –
396 230, Union Territory of Dadra and Nagar Haveli, India |
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Factory 2 : |
Plot No.131/1, Umbergaon, Sanjan Road, District Valsad – 396 170, Gujarat, India |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Prakash C. Kanugo |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/ Age
: |
02.07.1953 |
|
Date of Appointment
: |
09.05.1991 |
|
|
|
|
Name : |
Mr. Ashok M. Seth |
|
Designation : |
Whole-time Director and Chief Finance Officer |
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Date of Birth/ Age
: |
11.05.1973 |
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Date of Appointment
: |
09.11.1993 |
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|
|
|
Name : |
Mr. Hemant P. Kanugo |
|
Designation : |
Whole-time Director |
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Date of Birth/ Age
: |
14.10.1979 |
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Date of Appointment
: |
30.09.2003 |
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|
|
|
Name : |
Mr. Kamal P. Kanugo |
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Designation : |
Whole-time Director |
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Date of Birth/ Age
: |
11.03.1984 |
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Date of Appointment
: |
16.05.2008 |
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|
|
Name : |
Dr. Bipin C. Doshi |
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Designation : |
Independent Director |
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Name : |
Mr. Himanshu J. Thaker |
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Designation : |
Independent Director |
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Name : |
Mr. Gautam Chand Jain |
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Designation : |
Independent Director |
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Name : |
Mr. A. Prakashchandra Hegde |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Pallavi P. Shedge |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr. Surendra Tiwari |
|
Designation : |
DGM – Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.20115
|
Category of Shareholders |
No. of Shares |
% of Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
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|
360437 |
2.06 |
|
|
11366587 |
64.95 |
|
|
6889713 |
39.37 |
|
|
4476874 |
25.58 |
|
|
11727024 |
67.01 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
11727024 |
67.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
550000 |
3.14 |
|
|
739992 |
4.23 |
|
|
1289992 |
7.37 |
|
|
|
|
|
|
3427506 |
19.59 |
|
|
|
|
|
|
399103 |
2.28 |
|
|
644463 |
3.68 |
|
|
11951 |
0.07 |
|
|
10172 |
0.06 |
|
|
1779 |
0.01 |
|
|
4483023 |
25.62 |
|
Total Public shareholding (B) |
5773015 |
32.99 |
|
Total (A)+(B) |
17500039 |
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) |
17500039 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacturing of seamless and welded stainless tubes and U-tubes |
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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 : |
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Products : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Cash and Advance Payment |
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Purchasing : |
Cash and Advance Payment |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
700 (Approximately) |
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Bankers : |
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Facilities : |
Notes: Long-Term
Borrowings Indian rupee loan from
Banks (secured) carries interest @ 15.50 % p.a. (previous year 15.50% p.a.). The
loan is repayable in 84 monthly installments of Rs.1.461 million each along
with interest from the date of loan, viz., 10th July, 2008 the loan is
secured by way of mortgage of factory land and building, and hypothecation of
plant and machinery of Company at Umbergaon. (First pari passu charge between
Vijaya Bank and Bank of Baroda ) Indian rupee loan from
Banks (secured) carries interest 13% p.a. to 14.25 % p.a. The loan is
repayable after 15 months from the date of first disbursement (date:
18.05.2013) in 59 monthly equal installments of Rs.4.170 million and last
installment will be of Rs.3.970 million along with interest from the date of
loan, Interest and other charges to be paid as and when debited. This loan is
secured by way of mortgage of factory land and building, and hypothecation of
plant and machinery of Company at Umbergaon. (First pari passu charge with
Vijaya Bank and Bank of Baroda). Also second pari passu charge on current
assets of the Company including stocks and book debts. Vehicle loans from Banks
(secured) carries interest in the range of 7.50% p.a. to 12.50% p.a.
(previous year 7.50% p.a. to 10.75% p.a.) All the loans are repayable in 34 -
55 monthly installments from the date of disbursement. These loans are
secured against hypothecation of respective Vehicles and Post Dated Cheques
for Principal and Interest payable thereon. Vehicle loan from NBFC
(secured) outstanding as at end of the previous year carried interest of
approximately 11.50% p.a. The loan was repayable in 34 monthly installments
from the date of disbursement and is secured against hypothecation of
respective vehicle and Post Dated Cheques for Principal and Interest payable
thereon. Short-Term
Borrowings Cash Credit from Banks
(Secured) and Working Capital Loan from Bank (Secured) are repayable on
demand and carries interest @ 12.20% to 12.85% p.a., (previous year 12.75% to
16% p.a.), Buyers Credit (Secured) represents Foreign Currency Buyers Credit
from various Banks which carries interest ranging from 1 % to 5.25 % p.a.
(previous year 2% to 5.25% p.a.) having a tenor of maximum upto 180 days.,
Export Packing Credit from Banks (Secured) represents export packing Credit
facility from various banks. The tenor of the facility is maximum upto 180
days and the rate of interest (Foreign Currency facility) is Margin + LIBOR
i.e. approximately 3.50% to 5 % p.a. (previous year 3.50% to 5% p.a.) and
rate of interest (Indian Currency facility) is @ 13.00% p.a. and Bill
Discounting from Banks (Secured) outstanding as at the end of the previous
year represents bill discounted with various banks. The tenor of the loan is
in the range of 40 - 120 days and the rate of interest (local bill
discounting) is 10.25% p.a. to 11% p.a. and rate of interest (foreign bill
discounting) is in the range of 4 % to 5% p.a., All these loans are secured
by hypothecation of Stocks of Raw Material, Stocks-in-process, Finished
Goods, stores and spares (not relating to plant and machinery), bills
receivables, book debts and all other current assets and movables (both
present and future) at Silvassa and Umargaon [First Pari Passu charges
amongst Vijaya Bank, Bank of Baroda, Union Bank Of India, Bank of India and
DBS Bank Limited., and the whole of the movable plant and machinery including
all the spare parts and all other movable assets such as furniture, fixture,
fittings, vehicles and equipments (both present and future) at Silvassa
(First Pari Passu charges amongst the above mentioned banks] and at Umargaon
(Second Pari Passu charges amongst above mentioned banks) and collateral
securities in form of first pari-passu charge on piece and parcel of
non-agricultural land along with the building at Silvassa and office premises
no 101 and 102 at Islampura Street, at Mumbai, 701, Mahalaxmi Chambers, at
Mumbai, Bungalow unit No.C 26, at Swapan Lok Complex, Lonavla, District Pune,
Plot at Ohm Industrial Infrastructure Park, Umbergaon, District Valsad, State
Gujrat and two residential Plot No.B 30 and C 20, at Sheetal Township
project, Umbergaon, District : Valsad , State Gujrat belonging to three
Directors and their relatives and personal guarantee of four directos and
their relatives |
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|
|
Statutory Auditors : |
|
|
Name : |
Khandelwal Jain and Company Chartered Accountants |
|
Address : |
12-B,
Baldota Bhavan, 5th Floor, 117, M.K. Road, Churchgate, Mumbai –
400 020, Maharashtra, India |
|
|
|
|
Name : |
D.C. Bothra and Company Chartered Accountants |
|
Address : |
297,
Tardeo Road, Willie Mansion, 1st Floor, Nana Chowk, Mumbai – 400 007,
Maharashtra, India |
|
|
|
|
Name : |
Batliboi and Purohit Chartered Accountants |
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Internal Auditors : |
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|
Name : |
Anand Jain and Associates Chartered Accountants |
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Subsidiary Company
: |
Pioneer Stainless and Alloy – F.Z.E., UAE (w.e.f.
10th April, 2013) |
|
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|
|
Enterprise of
which key management person (Shri Prakash Kanugo) is proprietor : |
Sunrise
Metal Industries |
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|
Associates / Enterprises over which
directors and / or their relatives has significant influence : |
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CAPITAL STRUCTURE
AS ON 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
17500039 |
Equity Shares |
Rs.10/- each
|
Rs.175.000
million |
|
|
|
|
|
a)
Reconciliation of the shares outstanding at the beginning and at the end of the
reporting period:
|
Equity
shares |
As at 31st
March, 2014 |
|
|
No. of Shares |
Amount (Rs. in million) |
|
|
At the beginning of the period |
17500039 |
175.000 |
|
Issued during the year |
-- |
-- |
|
Outstanding
at the end of the period |
17500039 |
175.000 |
b) Terms/rights attached to
equity shares
The
Company has only one class of equity shares having a par value of Rs.10/- per
share. Each holder of equity shares is entitled to one vote per share. The
Company declares and pays dividends in Indian rupees. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.
The
Board of Directors, in their meeting on 29th May, 2014, proposed a
final dividend of Re.1/- per equity share. The proposal is subject to the approval
of shareholders at the Annual General Meeting to be held on 13th
August, 2014. The total dividend appropriation for the year ended 31st
March, 2014 amounted to Rs.17.500 million excluding corporate dividend tax of
Rs.2.974 million.
During
the year ended 31st March, 2013, the amount of final dividend
recognized as distributions to equity shareholders was Re.1/- per equity share.
The total dividend appropriation for the year ended 31st March, 2013
amounted to Rs.17.500 million excluding corporate dividend tax of Rs.2.974
million.
In
the event of liquidation of the Company, the holders of equity shares will be
entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in the proportion to the number of equity
shares held by the shareholders.
c)
Details of shareholders holding more than 5% shares in the Company
|
Particulars
|
As at 31st
March, 2014 |
|
|
No. of Shares |
%
of holding in the class |
|
|
Equity
shares of Rs.10 each fully paid |
|
|
|
Prakash C. Kanugo |
3783500 |
21.62% |
|
AMS Trading and Investment Private Limited |
2876000 |
16.43% |
|
Seth Iron and Steel Private Limited |
1490000 |
8.51% |
|
Balmiki Agencies Private Limited |
970649 |
5.55% |
FINANCIAL DATA
[All figures are
in Rupees million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
175.000 |
175.000 |
175.000 |
|
(b) Reserves & Surplus |
1620.431 |
1475.412 |
1355.617 |
|
(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) |
1795.431 |
1650.412 |
1530.617 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
391.010 |
55.699 |
62.739 |
|
(b) Deferred tax liabilities (Net) |
72.377 |
64.954 |
59.586 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
Long-term provisions |
6.296 |
7.832 |
5.750 |
|
Total
Non-current Liabilities (3) |
469.683 |
128.485 |
128.075 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
2188.786 |
1959.306 |
1852.015 |
|
(b)
Trade payables |
1585.359 |
1350.252 |
1395.177 |
|
(c)
Other current liabilities |
260.525 |
217.326 |
343.785 |
|
(d)
Short-term provisions |
70.968 |
41.374 |
60.517 |
|
Total
Current Liabilities (4) |
4105.638 |
3568.258 |
3651.494 |
|
|
|
|
|
|
TOTAL |
6370.752 |
5347.155 |
5310.186 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
821.251 |
704.107 |
767.600 |
|
(ii)
Intangible Assets |
18.232 |
2.909 |
1.051 |
|
(iii)
Capital work-in-progress |
6.819 |
118.129 |
34.381 |
|
(iv) Intangible assets under development |
0.000 |
20.070 |
0.000 |
|
(b) Non-current
Investments |
4.036 |
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
100.279 |
87.869 |
77.356 |
|
(e)
Other Non-current assets |
8.331 |
25.885 |
1.666 |
|
Total
Non-Current Assets |
958.948 |
958.969 |
882.054 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2054.578 |
1876.954 |
1451.015 |
|
(c)
Trade receivables |
2791.798 |
2019.733 |
2097.488 |
|
(d)
Cash and cash equivalents |
182.459 |
145.217 |
150.369 |
|
(e)
Short-term loans and advances |
326.492 |
282.845 |
677.007 |
|
(f)
Other current assets |
56.477 |
63.437 |
52.253 |
|
Total
Current Assets |
5411.804 |
4388.186 |
4428.132 |
|
|
|
|
|
|
TOTAL |
6370.752 |
5347.155 |
5310.186 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue From Operations (Net) |
9442.179 |
7932.153 |
6838.044 |
|
|
|
Other Income |
41.176 |
96.446 |
55.454 |
|
|
|
TOTAL (A) |
9483.355 |
8028.599 |
6893.498 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
6749.251 |
5155.681 |
3075.600 |
|
|
|
Conversion of land into stock-in-trade |
8.818 |
0.000 |
|
|
|
|
Raw Material Consumed |
1923.487 |
2383.765 |
2647.556 |
|
|
|
Increase / (Decrease) In Stock |
(338.457) |
(631.754) |
20.547 |
|
|
|
Stores & Spares Consumed |
93.913 |
153.699 |
121.228 |
|
|
|
Employee Benefit Expenses |
99.951 |
105.658 |
91.823 |
|
|
|
Other Expenses |
276.700 |
283.710 |
356.945 |
|
|
|
Prior Period Adjustments |
(0.031) |
1.100 |
1.598 |
|
|
|
Exceptional Items |
(17.500) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
8796.132 |
7451.859 |
6315.297 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
687.223 |
576.740 |
578.201 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
353.210 |
298.509 |
244.498 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
334.013 |
278.231 |
333.703 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
80.867 |
72.372 |
65.138 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
253.146 |
205.859 |
268.565 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
87.654 |
65.589 |
99.119 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
165.492 |
140.270 |
169.446 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
578.510 |
508.714 |
409.607 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
50.000 |
|
|
|
Proposed Dividend & Tax on Dividend |
20.474 |
20.474 |
20.339 |
|
|
BALANCE CARRIED
TO THE B/S |
673.528 |
578.510 |
508.714 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of Goods |
1260.724 |
976.976 |
582.593 |
|
|
TOTAL EARNINGS |
1260.724 |
976.976 |
582.593 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Material |
799.065 |
882.821 |
1158.889 |
|
|
|
Capital Goods |
54.542 |
14.642 |
9.662 |
|
|
|
Stores & Spares |
2.480 |
3.179 |
2.774 |
|
|
TOTAL IMPORTS |
856.087 |
900.642 |
1171.325 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
9.46 |
8.02 |
9.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2014 |
30.09.2014 |
31.12.2014 |
|
Unaudited |
1st
Quarter |
2nd
Quarter |
3rd Quarter |
|
Revenue |
2,065.730 |
2,512.810 |
2,570.010 |
|
Other Income |
16.170 |
24.470 |
30.110 |
|
Total Income |
2,081.900 |
2,537.280 |
2,600.120 |
|
Expenditure |
(1,867.450) |
(2,286.070) |
(2,430.950) |
|
Interest |
(89.030) |
(93.420) |
(96.470) |
|
PBDT |
125.410 |
157.790 |
72.700 |
|
Depreciation |
(28.600) |
(28.640) |
(28.420) |
|
PBT |
96.810 |
129.150 |
44.280 |
|
Tax |
(33.670) |
(42.570) |
(16.250) |
|
Net Profit |
63.150 |
86.580 |
28.030 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
1.75 |
1.77 |
2.48 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/ Sales) |
(%) |
7.28 |
7.27 |
8.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.98 |
3.95 |
5.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14 |
0.12 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.44 |
1.22 |
1.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.32 |
1.23 |
1.21 |
FINANCIAL ANALYSIS
[all figures are
in Rupees million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Million) |
(INR in Million) |
(INR in Million) |
|
Share Capital |
175.000 |
175.000 |
175.000 |
|
Reserves & Surplus |
1355.617 |
1475.412 |
1620.431 |
|
Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
1530.617 |
1650.412 |
1795.431 |
|
|
|
|
|
|
Long Term borrowings |
62.739 |
55.699 |
391.010 |
|
Short Term borrowings |
1852.015 |
1959.306 |
2188.786 |
|
Total borrowings |
1914.754 |
2015.005 |
2579.796 |
|
Debt/Equity ratio |
1.251 |
1.221 |
1.437 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Million) |
(INR in Million) |
(INR in Million) |
|
Revenue From Operations (Net) |
6,838.044 |
7,932.153 |
9,442.179 |
|
|
|
16.000 |
19.037 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Million) |
(INR in Million) |
(INR in Million) |
|
Revenue From Operations (Net) |
6,838.044 |
7,932.153 |
9,442.179 |
|
Profit |
169.446 |
140.270 |
165.492 |
|
|
2.48% |
1.77% |
1.75% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
FINANCIAL PERFORMANCE
The income from operations for
the year has increased to Rs.9442.179 million as compared to Rs.7932.153
million of previous year reflecting a growth of 19.04%. The Profit before Tax
for the year was Rs.253.146 million as against Rs.205.859 million in the
previous year reflecting an increase of Profit by 22.97%. The Net Profit After
Tax also increased by 17.98% at Rs.165.492 million as compared to Rs.140.270
million during previous year.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT FOR THE FINANCIAL YEAR 2013-2014
Industry Overview
The year 2013-14 marked a
subtle turnaround in the fortunes of the global economy. Europe witnesses
greater financial stability and there were signs of revival in a number of its
constituent nations, led by Germany and U.K.
The U.S. too saw better
employment numbers and an improvement in its growth prospects which prompted
its leaders to consider withdrawing the easy money policies that bolstered the
economy. Emerging markets, however, experienced some deceleration in their
growth.
On the domestic front, the
economy seems to have finally bottomed out. After dipping to 4.5% during the
previous year, GDP growth recovered to grow at 4.9%, largely due to revival in
agriculture growth. However, the volatile rupee, stubborn inflation and
stagnant industrial production continued to be a drag on the economy. Looking
ahead, there are indications of a turnaround on account of better global
growth, an improvement in export competitiveness and the implementation of
recently approved investment projects. Additionally, the formation of a strong
and stable government at the Centre is expected to augur well for India's
economy due to speedier implementation of progressive policies.
Until now, stagnant
domestic growth hurt consumer sentiments which were reflected in subdued demand
and consumption. Further, the inflationary impact on raw material prices,
largely due to the depreciation in Rupee, led to frequent price increases.
Domestic demand for the Company's product was comparatively although not as
good as expected. Demand from the export region was relatively better and
encouraging than the domestic region which remained stagnant.
At the international
business level, despite a persistently challenging global environment, some
markets where the Company operates showed sign of recovery. A tight Control on
expenses and lower raw material inflation helped the international operations
of the Company to deliver a strong performance despite difficult market
conditions.
India has become the second
best in terms of growth amongst the top ten steel producing countries in the
world and a net exporter of steel during 2013–14. Steel production in India
recorded a growth rate of 4.8 per cent in February, 2014 over February, 2013.
The cumulative growth during April–February, 2013–14 stood at 4.2 per cent over
the corresponding period of the previous year.
Steel contributes to nearly
two per cent of the gross domestic product (GDP) and employs over 500,000
people.
The total market value of
the Indian steel sector stood at US$ 57.8 billion in 2011 and is expected to
touch US$ 95.3 billion by 2016. The infrastructure sector is India's largest
steel consumer, thereby attracting investments from several global players.
Owing to this connection with core infrastructure segments of the economy, the
steel industry is of high priority right now. Also, steel demand is derived
from other sectors like automobiles, consumer durables and infrastructure;
therefore, its fortune is dependent on the growth of these user industries.
Steel castings Industry is considered to be the backbone of engineering
industry serving Automotive, Agricultural, Mining and Earthmoving Equipment
Industry and almost all downstream engineering industry. The FY 2013-14 was
challenging with lower growth in industrial production mainly due to continuing
high rate of inflation and depreciation of the rupee. These factors had an
adverse impact on the economy resulting in lower GDP growth rate. Rising input
costs, slow pace of industrial production, infrastructure development and the impact
of global slowdown constrained the performance of the industry. All most all
sectors registered lower growth rate during FY 2013-14. Hence, it affects Steel
industry as well. The Indian steel industry is largely iron-based through the
blast furnace (BF) or the direct reduced iron (DRI) route. Indian steel
industry is highly consolidated. About 60% of the crude steel capacity is
resident with
Integrated Steel Producers
(ISP). But the changing ratio of hot metal to crude steel production indicates
the increasing presence of secondary steel producers (non-integrated steel
producers) manufacturing steel through scrap route, enhancing their dependence
on imported raw material.
With urban population
increasing globally, there is a greater need for steel to build
public-transport infrastructure. Emerging economies will also continue to be a
major driver of demand as these necessitate a huge amount of steel for
urbanisation and industrialisation. The sector is expected to see an investment
to the tune of about Rs. 2 trillion (US$ 33.06 billion) in the coming years.
India's rank in the world
order of steel production remained unchanged at fourth slot with an output of
81.2 million tonnes, despite logging the highest growth of 5.05% among major
producing nations in 2013.
There was no change in the
top three steel producing nations with China, Japan and the US retaining their
slots in the respective order in 2013, World Steel Association (WSA) data
revealed.
Business Overview
We are into the business of
manufacturing stainless steel pipes, tubes for more than 22 years. Since
inception, they have made efforts to place our self in a competitive position
in the industry by proactively responding to our customer requirements. The
Company has emerged as one of the leading manufacturers of stainless steel
welded, seamless pipes and tubes in India and caters to both the markets
domestic as well as International. At present the Company has the customers
from oil and gas sector, power sector, desalination and nuclear power plants,
Engineering, Capital Goods, Chemical, Sugar and various other core sector
Industries. We want to leverage our strength to our benefit in future so as to
become the topmost player in the stainless steel tube industry. We wish to
continue to supply our products to corporate houses, increase our market share
in the industry, produce quality products at the competitive rates, adopt one
of the best human resource practices and also secure various certifications for
standards and quality improvement. We plan to boost our exports by
participating in trade fairs and exhibitions all over the World.
The Company is
manufacturing stainless steel welded, seamless pipes and tubes and has setup
two industrial plants at Silvassa and Umbergaon. Having set up its first Plant
at Silvassa in the year 1996 with a capacity of 4,000 MT p.a., the Company
expanded its capacity by setting up another plant at Umbergaon in Gujarat and
presently has total capacity of 20,500 MT during the year 2013-14. Further by
considering the potential of growth in Real estate, it has been decided to
enter into construction business through strategic alliance which will
strengthen the Company's performance in one more pillar of growth.
Prakash Steelage Limited
employs extensive internal controls, company-wide uniform reporting guidelines
and additional measures, including employee training and continuing education,
to ensure that its financial reporting is conducted in accordance with accepted
accounting principles. Your Company always believed that keeping a keen ear to
market demand and feedback goes a long way. We have kept the customer at the
center of all our strategies and this approach of Customer Centricity is paying
dividends.
Industrial Structure
Indian iron and steel
industry can be divided into two main sectors Public Sectors and Private
Sectors. Further on the basis of routes of production, the Indian industry can
be divided into two types of producers. Integrated producers: Integrated
producers are those that can convert iron ore into steel; Secondary producers:
Secondary producers are the mini steel plants which make steel by melting scrap
or sponge iron or a mixture of the two.
There are currently 100
small and medium scale units and 4 to 5 organised units engaged in manufacturing
of stainless steel welded, seamless pipes and tubes. The domestic demand
presently for stainless steel welded pipes and a tube is about 1,00,000 MT
which is expected to increase up to 2,75,000 MT by the year 2015/16. The top
players globally in this segment are Valtimet/ Tubacex/ Centravis. Company
specialises in meeting specific requirements of customers and offers complete
solution for stainless steel welded and seamless pipes and tubes. The type of
product varied based on the type, shape and size of the same some of which are
as listed below:
• S.S. Welded Tubes
• S.S. Welded Pipes
• S.S. EFW Pipes
• S.S. Seamless Tubes
• S.S. Seamless Pipes
• Square Tubes
• U Bend Tubing
• S.S. Seamless Mother
Hollows
Subsidiaries and Strategic
Alliance
During the year the Company
has incorporated its wholly-owned subsidiary, “Pioneer Stainless and Alloys,
FZC” at Ajmen Free Zone, Dubai U.A.E with an object of import and export of
Steel and Basic Steel products to Asian and European countries.
During the year the Company
embarked on a new journey by expanding its business activities in one more
stream, by making a Strategic Alliance with M/s. Karagwal Developers Private
Limited for developing its idle land located at Taluka Umbergaon, Village
Palgam, District Valsad, Gujarat. Under the said Strategic Alliance the Company
has introduced “Krishna Industrial Park”, where the Company has built
industrial plots for factories, warehouses, workshops, service stations, etc.
It is the ideal destination to set-up small and medium-sized enterprises like
textile industries, stainless steel industries, manufacturing units, automobile
industries, food and agriculture industries, mineral industries, cold storage,
warehouse, etc. with world-class infrastructure facilities.
Outlook
The outlook for the
Company's Business in future is very good. The Management expects CAGR of over
30% during next five years. The Government of India has allowed 100 per cent
FDI through the automatic route in the Indian steel sector. It has significantly
reduced the duty payable on finished steel products and has streamlined the
associated approval process. The demand for steel is increasing and the prices
have also firmed up during the year under report. The increase in steelmaking
capacity by the Company will be absorbed by the increasing demand for steel
products. India's growth story was, till recently, quite attractive in
comparison with many other developed and developing economies. Reforms in
global economy indicate positive signal for overseas market.
UNSECURED LOANS
|
Particulars |
31.03.2014 (Rs.
in million) |
31.03.2013 (Rs.
in million) |
|
LONG-TERM
BORROWINGS |
|
|
|
Term
Loans |
|
|
|
Indian rupee loan from Promoter Director |
250.000 |
0.000 |
|
Working
Capital Loan |
|
|
|
Indian rupee loan from NBFC |
0.000 |
10.000 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Working Capital loan from Bank |
0.000 |
25.000 |
|
Bill Discounting from Bank |
31.415 |
7.944 |
|
Bill Discounting from a NBFC |
140.799 |
151.400 |
|
Loan from NBFC |
0.000 |
50.000 |
|
Total
|
422.214 |
244.344 |
Notes:
Long
Term Borrowings
Indian rupee loan from
Promoter Director (Unsecured) taken from a proprietary concern of a Promoter Director,
carries interest @ 9.00%. The loan is repayable after the expiry of 5 years
with an option to be paid fully or in trenches. The interest is payable on
yearly basis. The said loan has been introduced as per the loan sanction terms
and conditions of Vijaya bank and Bank of India and shall remain in the
business during the currency of the loan from both the banks.
Working Capital loan from
NBFC (unsecured) taken on 26th February, 2013 for a period of 24 months carrying
interest rate of 10.75% p.a. (previous year 10.75% p.a.) flat on Rs.30.000
million. The same is repayable in 12 monthly installments of Rs.1.822 million
in the first year of the loan and installments of Rs.1.215 million for the
remaining period of the loan. The loan has been sanctioned against collateral
of Rs.6,000,000 with the lender along with post-dated cheques for Principal and
Interest payable thereon and personal guarantee of three directors.
Short-Term Borrowings
Working capital loan from
Bank (Unsecured) outstanding as at the end of the previous year was availed for
meeting working capital requirements of the company. The maximum tenor of the
loan is 180 days and rollover was permitted after cooling period 3 days. The
rate of interest is 12.75% to 13.25% p.a. The interest is payable monthly at
the end of each month / at the end of closure of the loan transaction. Bill
Discounting from Bank (Unsecured) represents export bills discounted with local
banks. The tenor of the loan is in the range of 50 to 120 days and the rate of
interest is approximately 10% to 10.70% p.a. (previous year 10% to 10.70% p.a.)
Bill Discounting from a NBFC (Unsecured) is availed from finance companies and
the tenor of the loan is 90 to 120 days and the rate of interest is 14.25% to
16.75% p.a. (previous year 14.25% p.a.).
Loan from NBFC (unsecured)
outstanding as at the end of the previous year taken for 12 months on September
28, 2012 carries interest @ STLR (floating) less 1.75% which is 14.75% p.a.
payable on a monthly basis is availed from a finance company. The principal
amount is repayable in 3 monthly equal instalments starting after 9 months of
the ailment of loan. The same has been sanctioned against the pledge of
unencumbered shares of the company held by a Promoter company to maintain the
security cover equal to 2.50 times at all times during the tenure of the loan
and irrevocable and unconditional, personal guarantee of two directors and
corporate guarantee by the said promoter company.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
in million) |
31.03.2013 (Rs.
in million) |
|
Contingent
liabilities not provided for in respect of: |
|
|
|
(a) Guarantees given by the bankers of the
company |
43.665 |
48.226 |
|
(b) Sales Tax demands disputed in appeals |
15.459 |
0.449 |
|
(c) Letter of Credit |
0.000 |
16.105 |
|
(d) Gujarat Commercial Tax Penalty |
0.000 |
0.235 |
|
(e) Central Sales Tax Liability towards
pending declaration forms |
29.811 |
7.594 |
|
(f) Disputed Excise Duty Rebate Claim |
0.551 |
0.551 |
|
(g) Disputed CENVAT Credit |
3.600 |
3.600 |
|
(h) Commitment towards development work for
Industrial Park Project |
85.000 |
0.000 |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS
ON 31.12.2014
(Rs. in million)
|
Particulars |
3 Months Ended |
9 Months Ended |
|
|
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
|
|
|
|
|
|
|
PART I |
|
|
|
|
1. Income from operations |
|
|
|
|
Gross sales/ income from operations |
2576.245 |
2522.311 |
7191.722 |
|
Less: Excise duty |
27.757 |
32.528 |
110.019 |
|
(a) Net sales/ income from operations |
2548.488 |
2489.783 |
7081.703 |
|
(b) Other operating income |
21.525 |
23.024 |
66.849 |
|
Total Income Operations (Net) |
2570.013 |
2512.807 |
7148.552 |
|
|
|
|
|
|
'2. Expenditure |
|
|
|
|
a) Cost of materials consumed |
588.020 |
546.045 |
1661.850 |
|
b) Purchase of stock-in-trade |
1830.862 |
1821.951 |
5145.578 |
|
c) Changes in inventories of finished goods, work-in-process and
stock-in-trade |
(109.953) |
(237.808) |
(627.012) |
|
d) Conversion of land into stock-in-trade |
1.663 |
5.265 |
11.503 |
|
e) Employees
Benefits Expense |
25.909 |
26.345 |
77.745 |
|
f) Depreciation
& Amortization Expense |
28.417 |
28.639 |
85.654 |
|
g) Consumption of stores and spares |
24.864 |
41.804 |
97.449 |
|
h)
Other Expenses |
69.587 |
82.465 |
217.363 |
|
Total Expenses |
2459.369 |
2314.706 |
6670.130 |
|
3. Profit/ (Loss) from Operations before Other Income, Financial Costs
and Exceptional Items (1-2) |
110.644 |
198.101 |
478.422 |
|
4. Other Income |
30.105 |
24.470 |
70.743 |
|
5. Profit/ (Loss) from Ordinary activities after Financial Costs but before and Exceptional
Items (3+4) |
140.749 |
22.671 |
649.166 |
|
6. Finance Costs |
96.468 |
93.419 |
278.921 |
|
7. Profit/ (Loss) from ordinary activities after Financial Costs but
before and Exceptional Items (5-6) |
44.281 |
129.152 |
270.244 |
|
8. Exceptional Item |
- |
- |
- |
|
9. Profit/ (Loss) from ordinary activities Before Tax (7+8) |
44.281 |
129.152 |
270.244 |
|
10. Tax Expenses |
|
|
|
|
- Current Tax |
17.686 |
45.146 |
98.831 |
|
- Deferred Tax |
(1.479) |
(2.576) |
(6.388) |
|
- Income tax for earlier year(s) |
0.044 |
- |
0.044 |
|
|
|
|
|
|
11. Net Profit/ (Loss) for the Period/ Year (9-10) |
28.030 |
86.582 |
177.757 |
|
12. Extraordinary Items (net of tax expense)
|
- |
- |
- |
|
13. Net Profit/ (Loss) for the period (11-12) |
28.030 |
86.582 |
177.757 |
|
14. Paid-up Equity Share Capital (Face Value
Rs.10/- each) |
175.000 |
175.000 |
175.000 |
|
15. Reserves excluding Revaluation Reserves as
per balance sheet of previous accounting year |
|
|
|
|
16. Earnings Per Share (before and after extraordinary items) (In Rs.)
(*not annualized) |
|
|
|
|
a) Basic |
1.60 |
4.95 |
10.16 |
|
b) Diluted |
1.60 |
4.95 |
10.16 |
|
|
|||
|
|
|||
|
A. PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of Equity Shares |
5773015 |
5773015 |
5773015 |
|
- Percentage of Shareholding |
32.99 |
32.99 |
32.99 |
|
2. Promoter and Promoter Group’s shareholding pledged |
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
-
Number of Shares |
2071593 |
1826593 |
2071593 |
|
-
Percentage of pledged
shares on shareholding of Promoter / Promoter Group |
17.67 |
15.58 |
17.67 |
|
-
Percentage of pledged
on Total Share Capital of the Company |
11.84 |
10.44 |
11.84 |
|
b) Non - Encumbered |
|
|
|
|
-
Number of Shares |
9655431 |
9900431 |
9655431 |
|
-
Percentage of shares
(as a % of the total shareholding of
Promoter / Promoter Group) |
82.33 |
84.42 |
82.33 |
|
-
Percentage of shares (as
a % of the total Share Capital of the Company) |
55.17 |
56.57 |
55.17 |
|
Particulars |
Quarter ended 31.12.2014 |
|
B. INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the
quarter |
Nil |
Note:
1. The above financial results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 13th February, 2015. The above results have been reviewed by the Statutory Auditors of the Company.
2. The Company’s operations predominantly relate to ‘Stainless Steel Tubes
& Pipes’ and the revenue / profit from Real Estate segment is insignificant
hence there is no separate reportable segment as per Accounting Standard 17
"Segment Reporting" as notified under the Companies Accounting
Standards Rules, 2006.
3. Other expenses, includes foreign currency exchange loss (net) of Rs.8.601
million, Rs. 9.272 million, Rs. 17.512 million, Rs. 41.769 million and Rs.
29.072 million for the quarter ended 31st December, 2014, 30th September, 2014,
nine months ended 31st December, 2014, 31st December, 2013 and year ended 31st
March, 2014 respectively and other income includes foreign currency exchange
gain (net) of Rs. 13.335 million for the quarter ended 31st December, 2013.
4. Pursuant to the guidelines under Schedule II of the Companies Act, 2013, the
carrying amount of the fixed assets as on 1st April, 2014 has been depreciated
over the remaining revised useful life of the fixed assets. As a result, the
depreciation charge for the quarter and nine months ended 31st December, 2014
is higher by Rs. 5.802 million and Rs. 18.010 million respectively and profit
before tax for the quarter and nine months ended 31st December, 2014 is lower
to the said extent. Further, based on the transitional provisions provided in
note 7(b) of the Schedule II, fixed assets whose useful life has already been
completed as on 1st April, 2014, the carrying value of those fixed assets
amounting to Rs. 9.070 million and the corresponding deferred tax thereon
amounting to Rs. 3.083 million have been debited and credited respectively to
the opening balance of ‘Retained Earnings’.
5. The figures for the previous period / year have been re-arranged /
re-grouped, wherever necessary to conform to current period’s presentation.
FIXED ASSETS:
Tangible
Assets
·
Factory Land
·
Factory Building
·
Office Building
·
Plant and Machinery
·
Electrical and Telephone
·
Installation and Office Equipment
·
Computers
·
Furniture and Fixtures
·
Vehicles
·
Live Stock
Intangible
Assets
·
Computer Software
PRESS RELEASE:
PRAKASH STEELAGE HIVES OFF TUBE DIVISION INTO JV WITH SPANISH CO
MUMBAI, FEBRUARY 16: Prakash Steelage has spun off its seamless stainless steel tube division into a separate entity to form a joint venture with Spain-based Tubacex. The Spanish company will pay Rs. 2500.000 Million to the Prakash Steelage for its 68 per cent equity stake in the new entity yet to be named. Of the total sum, Prakash Steelage will use Rs. 2000.000 Million to partly pay Rs. 3400.000 Million debt at the parent company level.
NEW PRODUCTS
The rest of the money will be utilized to bring in new products and technology at the joint venture company. Being listed on NSE and BSE, Prakash Steel age has to seek shareholders’ approval on the proposal. Speaking to media Ashok M Seth, Executive Director, Prakash Steel age, said the deal would benefit the shareholders indirectly as the debt level would come down substantially and also benefit from the dividend to the extent of its 32 per cent holding in the subsidiary company. “Tubacex would be able to bring in its global technology and tap the market demand emanating from sectors such as oil and gas and energy, including nuclear power,” he added.
Money matters
Prakash generates a revenue of Rs. 1750.000 Million from the seamless steel tube business with production capacity of 10,000 tonnes per annum while the other two legs of business — steel trading and manufacturing — account for Rs. 8250.000 Million. Listed on Spanish Stock Exchange since 1970, Tubacex is a global leader in niche stainless steel and high-alloyed seamless tubes and annual sales turnover of €700 million. It has production facility in Spain, Austria, China, Italy and United States and service centers in Brazil, France and Houston. Jesus Esmoris, Chief Executive Officer, Tubacex South Asia said the company intends to double the capacity in the joint venture to 20,000 tonnes in two years. “India imports about 60 per cent of the specialty seamless steel products requirement from various countries. From Spain we export steel worth about Rs. 650.000 Million to India and this joint venture would help us to tap the market more efficiently,” he said.
PRAKASH STEELAGE TO SET UP INDUSTRIAL PARK IN GUJARAT
WILL INVEST RS 700.000 MILLION PARK TARGETED AT SMES IN THE STATE
Mumbai: January 23,
2014: BSE-listed Prakash Steelage will invest Rs. 700.000 million to set
up Krishna Industrial Park (KIP) in Umbergaon in Gujarat to meet the
growing demands of upcoming SMEs in the state.
"They are investing Rs. 700.000 million to set up Krishna Industrial
Park in Umbergaon in Gujarat. The state-of-the-art facility is set to open new
avenues for SMEs in Gujarat," Prakash Steelage Chairman and Managing
Director Prakash Kanugo told reporters here today.
To be set up in association with Kargwal Group, KIP will provide infrastructure ready industrial plots for factories,
warehouses, workshops and service stations.
The park is targeted at small and medium enterprises such as textile
industries, stainless steel, metal, packaging, plastic manufacturing,
automobiles, food and agriculture, minerals and cold storages, Kanugo said.
The company hopes to post Rs 10000.000 million turnover in FY14 as compared to
Rs. 8500.000 million in FY13, he added.
Moreover, the Valsad-Umbergaon industrial area has been identified as an
emerging industrial hub which makes it an attractive destination for companies
from Maharashtra and Gujarat, Kargwal Group Managing Director Devang Varma
said.
The KIP will offer good connectivity to ports and highways and has an exclusive
loading and unloading area along with ample parking space. The plots are
offered in the range of 427 sq mts to 3,325 sq mts and the project will be
ready in the next two years.
Prakash Steelage is engaged in the manufacturing of seamless and welded
stainless tubes and U-tubes from its two factories in Umbergaon in Gujarat and
Silvassa.
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 records 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.64.05 |
|
|
1 |
Rs.99.04 |
|
Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
-- PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
48 |
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.