MIRA INFORM REPORT
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Report No. : |
323061 |
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Report Date : |
22.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHRI BAJRANG ALLOYS LIMITED |
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Registered
Office : |
521/C, Urla Industrial Complex, Raipur – 493221, Chhattisgarh |
|
Tel. No.: |
91-771-2324281 / 4288000 |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
16.08.1990 |
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Com. Reg. No.: |
005964 |
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Capital
Investment / Paid-up Capital : |
Rs.90.000 Million |
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CIN No.: [Company Identification
No.] |
L27103CT1990PLC005964 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The company is engaged in manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. The company has processed below average operational performance which has
resulted into continuous dip in top line growth of the company over a year.
Further rating also takes into consideration susceptibility of its operating
margin to volatility in steel prices and vulnerability to cyclicality in the
steel industry. However, trade relations are fair. Business is active. Payment terms
are reported to be slow but correct. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “B+” |
|
Rating Explanation |
Have high risk of default |
|
Date |
31.07.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A4” |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk. |
|
Date |
31.07.2014 |
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. Jayesh Kapadi |
|
Designation : |
General Manager – Finance |
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Contact No.: |
91-771-4288088 |
|
Date : |
16.05.2015 |
LOCATIONS
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Registered Office/ Factory : |
521/C, Urla Industrial Complex, Raipur – 493221, Chhattisgarh, India |
|
Tel. No.: |
91-771-2324281/ 2324282/ 4288000/ 2323628 / 4288088 |
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Fax No.: |
91-771-2323629/ 4288001 |
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E-Mail : |
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Website : |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Suresh Goel |
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Designation : |
Chairman |
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Name : |
Mr. Anand Goel |
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Designation : |
Managing Director |
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Name : |
Mr. Narendra Goel |
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Designation : |
Director |
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Name : |
Mr. Vikash Kumar Khedia |
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Designation : |
Independent Director |
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Name : |
Mr. Dinesh Agrawal |
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Designation : |
Independent Director |
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Name : |
Mr. Raj Kumar Yadava |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh kapadi |
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Designation : |
General Manager – Finance |
|
Name : |
Ms. Sheenam Pitroda |
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Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2015
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
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(A) Shareholding of
Promoter and Promoter Group |
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|
(1) Indian |
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|
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|
1452069 |
16.13 |
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|
3958900 |
43.99 |
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|
3958900 |
43.99 |
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|
5410969 |
60.12 |
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Total shareholding of
Promoter and Promoter Group (A) |
5410969 |
60.12 |
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(B) Public Shareholding |
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Bodies Corporate |
1344418 |
14.94 |
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Individual shareholders
holding nominal share capital up to Rs. 0.100 Million |
1105257 |
12.28 |
|
Individual shareholders
holding nominal share capital in excess of Rs. 0.100 Million |
1136144 |
12.62 |
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|
3212 |
0.04 |
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|
1520 |
0.02 |
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|
1692 |
0.02 |
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|
3589031 |
39.88 |
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Total Public shareholding
(B) |
3589031 |
39.88 |
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Total (A)+(B) |
9000000 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
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|
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
9000000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc. |
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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 : |
· Hindustan Construction Company Limited · Reliance Industries Limited · Thyssenkrupp Industries India Private Limited · Siemens Limited · Shree Renuka Sugars Limited · Afcons Infrastructure Industries Limited · Gammon India Limited · KEC International Limited · Jyoti Structures Limited · Adani Group · L and T Limited · Soma Enterprises Limited ·
Hindalco Industries Limited
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No. of Employees : |
70 (Approximately) |
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Bankers : |
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Facilities : |
NOTE : LONG TERM BORROWING There is no default, continuing or otherwise, as at the balance sheet
date, in repayment of any of the above loans. * In respect of Fixed Assets acquired on finance lease as per
Accounting Standard on Leases (AS-19), the minimum lease rentals outstanding as on 31st March, 2014 are as
follows:
** As clarified by management all above Mentioned Unsecured loan
treated as Long term. *** Maturity Profile of Unsecured Term Loans from Financial
Institutions & Banks are as set out below :
Above Loans had been secured by property of Directors and its
Relatives. SHORT TERM
BORROWING There is no default, as at the balance
sheet date, in repayment of any of above Loans. |
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Auditors : |
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Name : |
R K Singhania and Associates Chartered Accountants |
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Address : |
205, 1st Floor, Samta Colony, Raipur – 492
001, Chhattisgarh, India |
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Tel. No.: |
91-771-2255744-45/ 4036066 |
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Fax No.: |
91-771-2254188 |
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E-Mail : |
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Website: |
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Legal Advisor : |
V.K. Munshi and Associates |
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Wholly owned Subsidiary : |
Popular Mercantile Private Limited |
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Associate Companies: |
· Shri Bajrang Power and Ispat Limited · Shri Bajarang Ispat and Plywood Limited · Shri Bajrang Hydro Energy Private Limited · S.B. Multimedia Private Limited · Shimmer Investments Private Limited · Swastik Mercantiles Limited · Jainarayan Hari Ram Goel Charitable Trust · I A Energy |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Million |
|
1000000 |
Preference Shares |
Rs. 10/- each |
Rs. 10.000 Million |
|
|
Total |
|
Rs. 210.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each
|
Rs.90.000
Million |
Note:
Reconciliation of number
of equity shares outstanding at the beginning and at the end of the year.
|
PARTICULARS |
AS AT 31.03.2014 |
|
No of shares outstanding as at the beginning of the year |
9000000 |
|
Add : Number of shares allotted during the year as fully paid-up |
-- |
|
Number of shares outstanding as at the end of the
year |
9000000 |
Rights, preferences and restrictions attaching to various classes of
shares
|
SL No. |
Class of shares |
Rights, preferences and restrictions (including restrictions on
distribution of dividends and repayment of capital) attached to the class of
shares. |
|
1 |
Equity Shares |
Holder of Equity Share has one Vote per share. |
|
2 |
Preference shares |
Not Issued |
Shares in the company held by each shareholder holding more than 5%
shares
|
SL No. |
Name of the shareholder |
As at 31.03.2014 |
|
|
|
No. of shares |
% Held |
|
|
1 |
Rajendra Goel * |
847500 |
9.42 |
|
2 |
Atlanta Securities Private Limited |
760500 |
8.45 |
|
3 |
Narendra Goel * |
632700 |
7.03 |
|
4 |
Hariram Goel * |
566100 |
6.29 |
|
5 |
Anand Goel * |
513400 |
5.70 |
|
6 |
Suresh Goel * |
482400 |
5.36 |
* Hold as in capacity of Karta of HUF
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 |
90.000 |
90.000 |
90.000 |
|
(b) Reserves & Surplus |
173.995 |
161.850 |
147.816 |
|
(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) |
263.995 |
251.850 |
237.816 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
250.713 |
276.325 |
35.368 |
|
(b) Deferred tax liabilities (Net) |
3.682 |
4.403 |
4.775 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
1.683 |
1.397 |
1.129 |
|
Total Non-current Liabilities
(3) |
256.078 |
282.125 |
41.272 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
351.841 |
290.007 |
284.864 |
|
(b) Trade
payables |
4.475 |
4.519 |
6.746 |
|
(c) Other
current liabilities |
31.479 |
54.465 |
49.644 |
|
(d) Short-term
provisions |
7.845 |
8.179 |
10.061 |
|
Total Current
Liabilities (4) |
395.640 |
357.170 |
351.315 |
|
|
|
|
|
|
TOTAL |
915.713 |
891.145 |
630.403 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
43.645 |
49.047 |
54.559 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
18.520 |
18.520 |
15.010 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
189.635 |
217.641 |
3.145 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
251.800 |
285.208 |
72.714 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
254.924 |
213.206 |
262.041 |
|
(c) Trade
receivables |
255.716 |
293.260 |
192.341 |
|
(d) Cash
and cash equivalents |
0.655 |
30.846 |
0.663 |
|
(e)
Short-term loans and advances |
152.618 |
68.625 |
102.644 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
663.913 |
605.937 |
557.689 |
|
|
|
|
|
|
TOTAL |
915.713 |
891.145 |
630.403 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1042.529 |
1245.168 |
1560.165 |
|
|
|
Other Income |
0.219 |
0.894 |
1.606 |
|
|
|
TOTAL |
1042.748 |
1246.062 |
1561.771 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
871.671 |
1027.371 |
1283.302 |
|
|
|
Purchase of Stock in Trade |
19.534 |
15.455 |
36.778 |
|
|
|
Changes In Inventories |
(1.916) |
47.501 |
7.518 |
|
|
|
Employees benefit Expenses |
9.637 |
9.800 |
8.603 |
|
|
|
Other Manufacturing Expenses |
63.685 |
68.460 |
83.593 |
|
|
|
Other Administrative Expenses |
11.813 |
8.188 |
65.204 |
|
|
|
TOTAL |
974.424 |
1176.775 |
1484.998 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
68.324 |
69.287 |
76.773 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
41.891 |
38.695 |
36.835 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
26.433 |
30.592 |
39.938 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
8.486 |
9.855 |
8.955 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
17.947 |
20.737 |
30.983 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
5.802 |
6.704 |
9.630 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
12.145 |
14.033 |
21.353 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
88.290 |
84.257 |
72.904 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1.000 |
10.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
99.435 |
88.290 |
84.257 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
85.53 USD |
Nil |
8.671 |
|
|
|
|
139418 Euro |
Nil |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.35 |
1.56 |
2.37 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current Maturities of Long term debt |
15.139 |
14.038 |
0.000 |
|
Cash generated from operations |
NA |
NA |
NA |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
1.16 |
1.13 |
1.37 |
|
|
|
|
|
|
|
Operating Profit Margins
(PBTIT / Sales) |
(%) |
6.55 |
5.56 |
4.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.00 |
2.38 |
5.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
0.08 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.34 |
2.30 |
1.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68 |
1.70 |
1.59 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
Market Value |
Rs.22.10/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
90.000 |
90.000 |
90.000 |
|
Reserves & Surplus |
147.816 |
161.850 |
173.995 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
237.816 |
251.850 |
263.995 |
|
|
|
|
|
|
long-term borrowings |
35.368 |
276.325 |
250.713 |
|
Short term borrowings |
284.864 |
290.007 |
351.841 |
|
Current Maturities of
Long Term Debt |
0.000 |
14.038 |
15.139 |
|
Total borrowings |
320.232 |
580.370 |
617.693 |
|
Debt/Equity ratio |
1.347 |
2.304 |
2.340 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
1560.165 |
1245.168 |
1042.529 |
|
|
|
(20.190) |
(16.274) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
1560.165 |
1245.168 |
1042.529 |
|
Profit |
21.353 |
14.033 |
12.145 |
|
|
1.37% |
1.13% |
1.16% |
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 |
No |
|
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 |
No |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10532463 |
25/11/2014 |
4,765,400,000.00 |
BANK OF BARODA |
MID CORPORATE BRANCH, 2ND FLOOR LIC BUILDING PAND |
C34388983 |
|
2 |
10039900 |
18/10/2008 * |
1,243,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, MAIN BRANCH, K. K. ROAD |
A52168622 |
|
3 |
10042964 |
15/12/2007 * |
429,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, SECTOR 1,, BHILAI, CHHATTISGAR |
A37869419 |
|
4 |
10010048 |
12/07/2011 * |
340,000,000.00 |
STATE BANK F INDIA |
COMMERCIAL BRANCH,, SECTOR 1,, BHILAI, CHHATTISGA |
B17662685 |
|
5 |
90204285 |
24/09/2007 * |
10,000,000.00 |
BANK OF BARODA |
RAIPUR MAIN BRANCH, MAHAVIR GOUSHALA COMPLEX, K. |
A30978316 |
|
6 |
90202004 |
27/11/2010 * |
400,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, FIRST FLOOR,, MAHAVIR G |
B03097656 |
|
7 |
90203655 |
12/02/2013 * |
350,000,000.00 |
BANK OF BARODA |
WHOLESALE BANKING BRANCH, FIRST FLOOR,, MAHAVIR G |
B72377880 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
|
LONG TERM
BORROWINGS |
|
|
|
|
Loans and Advances from
Related Parties From Directors and their Relatives ** |
0.000 |
11.978 |
|
|
Loans and Advances from
others |
|
|
|
|
From Corporate Bodies |
1.679 |
2.246 |
|
|
From Financial Institutions and Banks |
246.475 |
260.046 |
|
|
Total |
248.154 |
274.270 |
|
|
|||
CONTINGENT
LIABILITIES
|
PARTICULARS |
31.03.2014 [Rs. In Million] |
31.03.2013 [Rs. In Million] |
|
(a) Claims against the company not
acknowledged as debt (Security amount deposited against the claim
Rs. nil) |
0.000 |
0.582 |
|
(b) Guarantees Bank Guarantees (Margin money of Rs. 17.800 Million
deposited with bank) |
1.777 |
1.000 |
|
Bill Discounted Under LC |
39.899 |
275.522 |
|
Corporate Guarantees on behalf of other
companies |
10057.000 |
2092.000 |
COMPANY OVERVIEW
Subject is one of the leading manufacturing company of Raipur. Company is engaged in manufacturing of Structural Steels like Angle, Channel, Joist/Beam, Round etc.
REVIEW OF OPERATIONS
On a Standalone basis the Revenue for the current financial year stood at Rs.1199.784 Million as compared to Rs.1445.383 Million in the previous year and Profit after Tax stood at Rs.12.145 Million during the current financial year as compared to Rs.14.033 Million in the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
ECONOMIC AND
INDUSTRY OVERVIEW
Steel is crucial to the development of any modern economy and is considered to be one of the backbones of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socio-economic development in a country.
The Steel Industry in India plays such a significant role in the Country's growth that they have their own Ministry of Steel. From only three Steel Plants, a few electric arc furnace-based plants and a mere one million tonne (MT) capacity status at the time of Independence, India is now the fourth largest Crude Steel Producer in the world and the largest producer of sponge iron. The country has also been the largest Sponge Iron Producer in the world since 2003.
The Indian steel sector was the first core sector to be completely freed from the licensing regime and pricing and distribution controls. This was done primarily because of the inherent strengths and capabilities demonstrated by the Indian Iron and Steel Industry. While the existing units are being modernised or expanded, a large number of new steel plants have also come up in different parts of the country based on cost-effective and state of the-art technologies. The economic reforms and the consequent liberalization of the iron and steel sector which started in the early 1990s resulted in substantial growth in the steel industry and green field steel plants were set up in the private sector.
Presently, steel contributes to nearly two per cent of the gross domestic product (GDP) and employs over 5,00,000 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. India's per capita steel consumption stood at 57.8 kilograms in 2013, according to a World Steel Association report and is expected to rise with increased industrialization throughout the country.
India is slated to become the second-largest steel producer in the world by 2015. Steel production in the country has increased at a compound annual growth rate (CAGR) of 6.9 per cent over 2008-2012.
India's real consumption of total finished steel grew by 0.6 per cent year-on-year in April-March 2013-14 to 73.93 MT, according to the Joint Plant Committee (JPC), Ministry of Steel. Increasing demand by sectors such as infrastructure, real estate and automobiles at home and abroad has put India on the world map. The construction sector accounts for around 60 per cent of the country's total steel demand while the automobile industry accounts for 15 per cent.
OUTLOOK
The steel industry has undergone a few structural changes in the past 3-4 years. So, the outlook for the next few years is likely to be driven by the kind of consolidation that has taken place in the past few years. The other factor that is likely to affect outlook is the extent of demand emerging from BRIC countries.
In addition to these two major factors, a cost-push is coming from raw material suppliers. Hence, steel manufacturers have to contend with strong demand on one hand, and cost-push on the other. The outlook for the domestic industry looks bright, since India has good iron ore deposits, skilled manpower and growing demand for steel. The Company with a well-defined product portfolio is poised to take advantage of the growth in iron and steel demand in the coming years.
Steelmakers are addressing myriad challenges such as volatility, shifting demand centers, complex supply chains, productivity and cost efficiency. As steelmakers increase their ability to survive in tough times, we will see increased market competition in nearly all products especially as there is a focus shift to high value, higher margin steel products.
The speed and degree of changes in the global economy and the increasingly complex interplay of factors influencing a more globally integrated steel business make horizon watching essential. To succeed, steelmakers must determine how to optimize and create a new product mix and decide whether they are prepared to take the plunge to invest in new geographic markets.
As demand continues to shift to developing nations, the steel sector is directed toward China, with some focus on Brazil, Russia and India. As Africa becomes increasingly urbanized, it may be that the future scramble for African demand could completely shift the landscape in years to come.
There are signs of economic improvement and demand growth in most steel markets: Urbanization and a growing middle class continue to be global trends driving steel demand in construction and real estate. Increasing investment in construction and infrastructure led to an 8% y-o-y increase in global demand for long products in 2013. The Asian construction market remains the main driver of growth in this steel sub-sector capturing almost 40% of total construction spending.
There will be increasing steel demand from the automotive sector in both emerging and developed regions.
The US, Brazil, Japan and China are the hotspots in the automotive sector with calculated annual growth of between: 5% to 11%, forecast to 2016.
Despite threats from other materials, steel, still accounts for nearly 70% of the materials used in a passenger car, so there is ample opportunity for steelmakers to capture market share with value added products.
Although there was a slight improvement in the economies of developed markets in 2013, it was offset by slower growth in emerging economies.
Overall, the global economic outlook is positive with industrial production forecast to grow by 4% in 2014. Success for steelmakers will increasingly depend on being agile and nimble in responding to market opportunities that provide better margins.
FIXED ASSETS
· Leasehold Land
· Freehold Land
· Factory Building
· Other Building
· Plant and Equipments
· Rolls
· Furniture and Fixtures
· Vehicles
·
Computer
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE
QUARTER / NINE MONTHS ENDED AS ON 31.12.2014
(Rs. In Million)
|
Sr. No. |
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net sales/income from operations (net of excise duty) |
196.220 |
189.393 |
588.579 |
|
|
(b) Other operating income |
0.575 |
0.000 |
0.575 |
|
|
Total income from
operations (net) |
196.795 |
189.393 |
589.154 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
134.033 |
175.152 |
483.540 |
|
|
(b) Purchases of stock-in-trade |
10.164 |
13.959 |
40.088 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
22.465 |
(27.580) |
(22.340) |
|
|
(d) Manufacturing and Employee benefit |
13.059 |
15.386 |
39.953 |
|
|
(e) Depreciation and amortization expense |
1.530 |
1.461 |
4.591 |
|
|
(f) Other expenses |
2.950 |
1.603 |
6.482 |
|
|
Total expenses |
184.201 |
179.981 |
552.314 |
|
3 |
Profit from
operations before other income, finance costs and exceptional items (1-2) |
12.594 |
9.412 |
36.840 |
|
4 |
Other income |
0.000 |
0.028 |
0.028 |
|
5 |
Profit from
ordinary activities before finance costs and exceptional items (3+4) |
12.594 |
9.440 |
36.868 |
|
6 |
Finance costs (net) |
9.703 |
6.283 |
27.405 |
|
7 |
Profit from ordinary
activities after finance costs but before exceptional items (5-6) |
2.891 |
3.157 |
9.463 |
|
8 |
Exceptional items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit from
ordinary activities before tax (7-8) |
2.891 |
3.157 |
9.463 |
|
10 |
Tax expense |
0.938 |
1.024 |
2.870 |
|
11 |
Net Profit from
ordinary activities after tax (9-10) |
1.953 |
2.133 |
6.593 |
|
12 |
Extraordinary items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit for the
period/year (11-12) |
1.953 |
2.133 |
6.593 |
|
14 |
Paid-up equity share capital (Face value of the share Rs. 10 each) |
90.000 |
90.000 |
90.000 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
--- |
-- |
-- |
|
16 |
Earnings Per Share (EPS) (Rs.) (before and after extraordinary items) |
0.22 |
0.24 |
0.73 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
Number of shares |
3589031 |
3589031 |
3589031 |
|
|
Percentage of shareholding |
39.88 |
39.88 |
39.88 |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged /
encumbered |
|
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
|
Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group) |
Nil |
Nil |
Nil |
|
|
Percentage of shares (as a % of the total share capital of the Company) |
Nil |
Nil |
Nil |
|
|
b) Non-encumbered |
|
|
|
|
|
Number of shares |
5410969 |
5410969 |
5410969 |
|
|
Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group) |
100.00 |
100.00 |
100.00 |
|
|
Percentage of shares (as a % of the total share capital of the Company) |
60.12 |
60.12 |
60.12 |
|
B |
INVESTOR COMPLAINTS |
|
Quarter Ended 31.12.2014 |
|
|
Pending at the beginning of the quarter |
|
0 |
|
|
Received during the quarter |
|
0 |
|
|
Disposed of during the quarter |
|
0 |
|
|
Remaining unresolved at the end of the quarter |
|
0 |
NOTES
1.The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on 12.02.2015 and have been subjected to a limited review by the Statutory Auditors.
2. Provision for Current tax is made on estimated basis. Deferred tax has been provided in full year audited accounts.
3. The Company's operations fall under single segment.
4. Previous quarter and financial year’s figures were regrouped / rearranged wherever necessary.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.70 |
|
|
1 |
Rs. 98.92 |
|
Euro |
1 |
Rs. 70.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
DPA |
|
|
|
|
Analysis done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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 |
|
32 |
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.