MIRA INFORM REPORT

 

 

Report No. :

343246

Report Date :

02.10.2015

 

IDENTIFICATION DETAILS

 

Name :

ANKIT METAL AND POWER LIMITED (w.e.f. 31.08.2004)

 

 

Formerly Known As :

ANKIT METAL AND POWER PRIVATE LIMITED (w.e.f. 08.07.2004)

 

ANKIT STEEL WORKS PRIVATE LIMITED

 

 

Registered Office :

35, Chittaranjan Avenue, Kolkata – 700012, West Bengal

Tel. No.:

91-33-22119805

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

07.08.2002

 

 

Com. Reg. No.:

21-094979

 

 

Capital Investment / Paid-up Capital :

Rs. 1220.755 Million

 

 

CIN No.:

[Company Identification No.]

L27101WB2002PLC094979

 

 

IEC No.:

0203024044

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALA05741B

 

 

 

PAN No.:

[Permanent Account No.]

AAECA5230B

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Iron Ore Pillets, Sponge Iron, MS Billets, Re-Rolled products with a Captive Power Plant (CPP).

 

 

No. of Employees :

632 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (16)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Exist

 

 

Comments :

Subject was incorporated in the year 2002 engaged in the steel manufacturing business. It offers sponge iron, pig iron, M.S. ingots & billets, TMT bars, pellets, ferro alloys, rods and rolled products.

 

During the year under review the company net income was declined by 22.22% on the net income of Rs. 11476.922 Million as against Rs. 14756.953 Million in previous year. Moreover, the company incurred a net loss of Rs. 1932.841 million during the FY. 2014-15 which is mainly attributed to depressed market for its products and lower capacity utilizing of power plant.

 

The ratings primarily take into account the stretched liquidity position of the company characterized by multiple instances of devolvement of non-fund based facilities in recent times and subsequent periodic overutilization of the fund based facilities.

 

The ratings also take into consideration the adverse financial metrics of the company as reflected by its loss making nature of operations, highly aggressive capital structure and weak debt coverage metrics during April 2014 to March 2015 (FY2015).

 

Payments are reported to be slow and delayed.

 

In view of aforesaid, the company can be considered for business dealings on safe and secured trade terms and conditions.

 

Note: The Corporate Debt Restructuring Proposal was referred to CDR Empowered Group by the consortium of lenders led by State Bank of India. The CDR Proposal as recommended by SBI was approved by CDR EG on September 9, 2014 and communicated vide letter of Approval dated 17th September, 2014. Under CDR package, the Company’s debts were restructured and additional credit facilities have been sanctioned as set out in the said letter of Approval. The cutoff date for CDR package is February 01, 2014.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Term Loan=C+

Rating Explanation

Poor-credit quality and limited prospects of recovery

Date

May, 2015

 

 

Rating Agency Name

ICRA

Rating

Letter of Credit=A4

Rating Explanation

Minimal degree of safety and very high credit risk

Date

May, 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 31-03-2015.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON-COOPERATIVE

 

(Contact No: 91-33-40168000)

 

 

LOCATIONS

 

Registered Office :

35, Chittaranjan Avenue, Kolkata – 700012, West Bengal, India

Tel. No.:

91-33-22119805-06/  40640021-22

Fax No.:

91-33-22114134

E-Mail :

enquiry@ankitmetal.com

secretarial@rohitferrotech.com

Website :

www.ankitmetal.com

 

 

Corporate Office :

SKP House, 132A, S.P. Mukherjee Road, Kolkata – 700026, West Bengal, India

Tel. No.:

91-33-40168000

Fax No.:

91-33-40168189/ 8107

E-Mail :

cs@ankitmetal.com

 

 

Factory :

Village Jorehira Mouza, Burat, Jorehira and Sonpura, P.S. Chattna, District  Bankura, West Bengal, India

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Mr. Suresh Kumar Patni

Designation :

Non-Executive Chairman

 

 

Name :

Mr. Ramesh Seemakurti (Appointed w.e.f. 22nd August, 2015)

Designation :

Promoter/Non- Executive Director

Date of Birth/Age :

20.08.1968

Brief resume and nature of expertise in functional area :

A competent professional with more than 25 years of rich cross functional experience in the areas of Strategic Planning, Production Management, Process, Re-engineering, Turnaround Management, Quality Management and Team Management in Ferro Alloy, Cable and Conductors and Steel Sector. A strategic planner with expertise in managing production activities, streamlining processes/procedures to facilitate smooth production process and enhance productivity. Adept at conceptualizing profitable projects and managing operations encompassing Business Possess excellent interpersonal, analytical, troubleshooting and team building skills with proven ability in establishing quality systems/procedures and planning/managing resources.

Date of Appointment :

22.08.2015

 

 

Name :

Mr. Sanjay Singh

Designation :

Executive Director

Date of Birth/Age :

10.10.1975

Qualification :

He is a Bachelor of Engineering

Brief resume and nature of expertise in functional area :

He is associated with the Company since last 8 years and has considerable experience in implementing the project and running the plant.

Date of Appointment :

24.08.2015

 

 

Name :

Mr. Rohit Jain

Designation :

Independent/Non- Executive Director

Date of Birth/Age :

30.12.1987

Brief resume and nature of expertise in functional area :

He is a Cost Accountant and Company Secretary with a wide experience of more than 5 years in Iron and Steel Industry. He has worked with Glaxo Smith Kline Consumer Healthcare Ltd. for 2 years in Kolkata in the field of Finance and Accounts.

Date of Appointment :

23.03.2015

 

 

Name :

Mrs. Sujata Agarwal

Designation :

Independent/Non- Executive Director

 

 

Name :

Mr. Jatindra Nath Rudra

Designation :

Independent/Non- Executive Director

Date of Birth/Age :

22.11.1979

Brief resume and nature of expertise in functional area :

Dr. Sujata Agarwal, a Doctorate (Ph.D) in Management Studies by profession, is the Business Head for Oriental Flowers. With Interest in Motivational talks and Management Field, she has undergone Leadership Training Programs with eminent Personalities. Dr. Sujata Agarwal has been an all rounder Professional and associated with many various forums from her young age.

Date of Appointment :

23.03.2015

 

 

Name :

Mr. Prem Narayan Khandelwal

Designation :

Independent/Non- Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Nikhil Deora

Designation :

Company Secretary

 

 

Name :

Mr. Anand Jain

Designation :

Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2015

 

Category of Shareholders

No. of Shares

 

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

2510500

2.06

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

78669500

64.44

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

81180000

66.50

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

 

 

Total shareholding of Promoter and Promoter Group (A)

81180000

66.50

(B) Public Shareholding

 

 

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

 

 

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

100

0.00

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

862000

0.71

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

862100

0.71

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

 

 

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

17798079

14.58

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

 

 

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

6462863

5.29

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

12112442

9.92

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

3660016

3.00

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

1840799

1.51

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

4

0.00

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

475175

0.39

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

1344038

1.10

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

40033400

32.79

Total Public shareholding (B)

40895500

33.50

Total (A)+(B)

122075500

100.00

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

 

 

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

0

0.00

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

0

0.00

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

0

0.00

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

122075500

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Iron Ore Pillets, Sponge Iron, MS Billets, Re-Rolled products with a Captive Power Plant (CPP).

 

 

Products :

--

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

632 (Approximately)

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

Person Name (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

·         State Bank of India

·         Andhra Bank

·         Syndicate Bank

·         IDBI Bank Limited

·         State Bank of Travancore

·         Indian Overseas Bank

·         State Bank of Mysore

·         State Bank of Bikaner and Jaipur

·         United Bank of India

·         Allahabad Bank

·         Corporation Bank

·         UCO Bank

·         State Bank of Hyderabad

·         State Bank of Patiala

 

 

Facilities :

SECURED LOANS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Term Loans

 

 

Project Term Loan

4055.695

3106.796

Working Capital Term Loan (WCTL)

2233.052

0.000

Funded Interest Term Loan (FITL)

1037.217

0.000

 

 

 

Other Loans

 

 

Loan against Vehicle (Secured)

0.150

0.301

 

 

 

SHORT TERM BORROWINGS

 

 

Loan Repayable on Demand

 

 

Working Capital Loan from Banks

4031.649

3995.727

 

 

 

Total

11357.763

7102.824

 

Banking Relations :

--

 

 

Auditors :

 

Name :

R. Kothari and Company

Chartered Accountants

Address :

16A, Shakespeare Sarani, Kolkata – 700071, West Bengal, India

Tel. No.:

91-33-22826776/ 6809/ 6807

Fax No.:

91-33-22825921

E-Mail :

kolkata@rkothari.in

 

 

Cost Auditors :

 

Name :

Sambhu Banerjee

Cost Accountants

Address :

16/2, Chatra Mukherjee Para, P.O. Serampore - 712204, West Bengal, India

 

 

Internal Auditors :

 

Name :

NR and Associates

Chartered Accountants

Address :

16A, Shakespeare Sarani, 5th Floor, Kolkata - 700071, West Bengal, India

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Enterprise on which the company has control :

SKP Mining Private Limited

 

 

Entities/Individuals owning directly or indrectly an interest in the voting power that gives them control :

·         SBM Steels Private Limited

·         Gajkarna Merchandise Private Limited

·         Shubham Complex Private Limited

·         Rellybulls Derivatives and Commodities Private Limited

·         Narmada River Resources Private Limited

·         A. B. Infratel Private Limited

 

 

Other Related Parties :

·         Rohit Ferro-Tech Limited

·         Impex Ferro Tech Limited

·         Impex Metal and Ferro Alloys Limited

·         Relybulls Stock Broking Private Limited

·         Sarita Steel and Power Limited

·         SKP Overseas Pte Limited

·         Shreyansh Leafin Private Limited

·         VNG Mercantiles Private Limited

·         Marble Arch Properties Private Limited

·         Arthodock Vinimay Private Limited

·         Whitestone Suppliers Private Limited

·         Nucore Export Private Limited

·         Invesco Finance Private Limited

·         SKP Aviation Services Limited

·         SKP Power Venture Limited

·         SKP Mining Private Limited

·         Suanvi Trading and Investment Company Private Limited

·         Vasupujya Enterprises Private Limited

·         Poddar Mech Tech Services Private Limited

·         Divine Trading Company Private Limited

·         Astabhuja Properties Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1222.50 lacs

Equity Shares

Rs. 10/- each

Rs. 1222.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1220.76 lacs

Equity Shares

Rs. 10/- each

Rs. 1220.755 Million

 

 

 

 

 

a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

 

Particulars

31.03.2015

(No. of Shares)

in lacs

(Rs. In Million)

At the Beginning of the Year

1,220.76

1220.755

Issued during the period – Preferen􀆟 al Allotment

--

--

Outstanding at the end of year

1,220.76

1220.755

 

 

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 shareholder is eligible for one vote per share held and in case of poll, the voting rights of every member shall be in proportion to his shares of the paid-up Equity Share capital of the Company.

 

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.

 

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 proportion to the number of Equity Shares held by the shareholders.

 

c) Details of shareholders holding more than 5% shares in the Company

 

Equity Share of Rs. 10/- each fully paid

31.03.2015

(No in lacs)

Invesco Finance Private Limited

113.22

Nucore Exports Private Limited

108.21

Vasupujya Enterprises Private Limited

103.70

Whitestone Suppliers Private Limited

100.75

Shreyansh Leafin Private Limited

110.65

VNG Mercantiles Energy Private Limited

90.09

Arthodock Vinimay Private Limited

88.75

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

31.03.2013

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1220.755

1220.755

953.755

(b) Reserves & Surplus

1869.724

3805.507

4037.821

(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)

3090.479

5026.262

4991.576

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

7782.514

3137.097

4730.678

(b) Deferred tax liabilities (Net)

0.000

0.000

302.040

(c) Other long term liabilities

0.000

20.025

20.151

(d) long-term provisions

2.031

1.132

0.892

Total Non-current Liabilities (3)

7784.545

3158.254

5053.761

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

4228.366

4267.634

2937.851

(b) Trade payables

3807.934

3207.991

2303.219

(c) Other current liabilities

440.171

1904.340

1041.891

(d) Short-term provisions

221.824

97.101

233.688

Total Current Liabilities (4)

8698.295

9477.066

6516.649

 

 

 

 

TOTAL

19573.319

17661.582

16561.986

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

7757.614

8492.608

7062.155

(ii) Intangible Assets

0.996

1.494

1.992

(iii) Capital work-in-progress

11.798

11.798

1647.389

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1.602

1.175

1.175

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

44.281

(e) Other Non-current assets

0.108

0.132

0.132

Total Non-Current Assets

7772.118

8507.207

8757.124

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

6534.308

4278.204

3593.268

(c) Trade receivables

3310.346

3237.928

2591.774

(d) Cash and cash equivalents

242.165

327.576

197.144

(e) Short-term loans and advances

1172.072

743.145

1288.471

(f) Other current assets

542.310

567.522

134.205

Total Current Assets

11801.201

9154.375

7804.862

 

 

 

 

TOTAL

19573.319

17661.582

16561.986

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Income

11476.922

14756.953

11927.681

 

 

Other Income

102.610

31.251

11.786

 

 

TOTAL                                     (A)

11579.532

14788.204

11939.467

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

7450.537

8801.387

6856.200

 

 

Purchases of Stock-in-Trade

4180.403

4067.135

3188.087

 

 

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

(1312.988)

113.699

(696.179)

 

 

Employees benefits expense

169.374

141.076

92.830

 

 

Other expenses

1157.440

981.353

724.800

 

 

TOTAL                                     (B)

11644.766

14104.650

10165.738

 

 

 

 

 

 

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

(65.234)

683.554

1773.729

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1130.993

1152.008

713.739

 

 

 

 

 

 

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

(1196.227)

(468.454)

1059.990

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

736.614

596.379

411.123

 

 

 

 

 

 

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

(1932.841)

(1064.833)

648.867

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

(299.632)

136.987

 

 

 

 

 

 

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

(1932.841)

(765.201)

511.880

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

0.000

25.563

120.555

 

TOTAL EARNINGS

0.000

25.563

120.555

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

599.205

485.927

518.657

 

 

Components & Spares

16.537

6.102

1.466

 

 

Capital Goods

0.000

0.000

34.494

 

TOTAL IMPORTS

615.742

492.029

554.617

 

 

 

 

 

 

Earnings Per Share (Rs.)

(15.83)

(6.27)

5.37

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term Borrowings

0.927

931.614

561.703

 

 

 

 

Cash Generated from Operations

(2534.747)

660.627

287.612

 

 

 

 

Net Cash from Operating Activities

(2548.013)

614.257

183.229

 

 

QUARTERLY RESULTS

 

PARTICULARS

(Unaudited)

30.06.2015

(1st Quarter)

Net Sales

2583.220

Total Expenditure

2541.250

PBIDT (Excl OI)

41.970

Other Income

4.040

Operating Profit

46.010

Interest

316.830

Exceptional Items

0.000

PBDT

(270.820)

Depreciation

172.180

Profit Before Tax

(443.000)

Tax

0.000

Provisions and contingencies

0.000

Profit After Tax

(443.000)

Extraordinary Items

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

(443.000)

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

(16.84)

(5.19)

4.29

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

(0.57)

4.63

14.87

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(9.88)

(6.03)

4.35

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.63)

(0.21)

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

3.89

1.66

1.65

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.36

0.97

1.20

 

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

Rs.10.00/-

 

 

Market Value

Rs. 1.90/-

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

953.755

1220.755

1220.755

Reserves & Surplus

4037.821

3805.507

1869.724

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

4991.576

5026.262

3090.479

 

 

 

 

Long-term borrowings

4730.678

3137.097

7782.514

Short term borrowings

2937.851

4267.634

4228.366

Current Maturities of Long-Term Borrowings

561.703

931.614

0.927

Total borrowings

8230.232

8336.345

12011.807

Debt/Equity ratio

1.649

1.659

3.887

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

11927.681

14756.953

11476.922

 

 

23.720

(22.227)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

11927.681

14756.953

11476.922

Profit

511.880

(765.201)

(1932.841)

 

4.29%

(5.19%)

(16.84%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

LITIGATIONS DETAILS:

 

HIGH COURT OF CALCUTTA – ORGINAL SIDE CASE STATUS INFORMATION SYSTEM

 

Case Status : Pending

 

Status of :   THE COMMISSIONER OF CENTRAL EXCISE AND SER  Vs. ANKIT  

                   METAL AND POWER LIMITED AND ORS                                                        

                  

Pet’s Adv. : SANTA MITRA

 

Res’s Adv. :----

 

Last Date of Hearing :---

 

Next/ Final date of Hearing :---

 

Case Updated On : Thursday, December 18, 2014

 

          Category : CUSTOMS : REVENUE

 

Connected Application (s)

GA 4035 2014

GA 4036 2014

 

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10552842

30/01/2015 *

12,800,300,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMB
AI- 400005, MAHARASHTRA, INDIA

C46530556

2

10534495

17/10/2014

448,900,000.00

STATE BANK OF HYDERABAD

PARK STREET BRANCH, 113, PARK STREET,, KOLKATA- 700016, W
EST BENGAL, INDIA

C35735315

3

10532658

30/09/2014

1,271,800,000.00

INDIAN OVERSEAS BANK

INDIA EXCHANGE PLACE BRANCH, P-35, INDIA EXCHANGE
PLACE, KOLKATA- 700001, WEST BENGAL, INDIA

C34510594

4

10448688

04/09/2013

500,000,000.00

ALLAHABAD BANK

RED CROSS PLACE BRANCH, 7, RED CROSS PLACE, KOLKA
TA- 700001, WEST BENGAL, INDIA

B84839554

5

10448021

13/08/2013

1,027,800,000.00

INDIAN OVERSEAS BANK

INDIA EXCHANGE PLACE BRANCH, P-35, INDIA EXCHANGE
PLACE, KOLKATA- 700001, WEST BENGAL, INDIA

B84557578

6

10435791

18/06/2013

9,767,400,000.00

INDIAN OVERSEAS BANK

INDIA EXCHANGE PLACE BRANCH (AS TITLE DEED HOLDER)
, P-35 INDIA EXCHANGE PLACE, KOLKATA- 700001, WEST BENGAL
, INDIA

B79178000

7

10424136

10/04/2013

235,000,000.00

CORPORATION BANK

CORPORATE BANKING BRANCH, 17, BRABOURNE ROAD, KOL
KATA- 700001, WEST BENGAL, INDIA

B74572322

8

10423716

25/09/2014 *

720,700,000.00

STATE BANK OF BIKANER AND JAIPUR

20B PARK STREET,, KOLKATA- 700016, WEST BENGAL, I
NDIA

C34732818

9

10422280

26/03/2013

250,000,000.00

ANDHRA BANK

BALLYGUNGE BRANCH,, 87, RASH BEHARI AVENUE, KOLKA
TA- 700026, WEST BENGAL, INDIA

B73900953

10

10371884

07/08/2012

612,200,000.00

STATE BANK OF BIKANER AND JAIPUR (LEAD BANK)

N. S. ROAD BRANCH,, 14 N. S. ROAD,, KOLKATA- 700001, WEST
BENGAL, INDIA

B56140288

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Loans from Related Parties

 

 

From Bodies Corporate

331.200

0.000

From Directors and Promoters

125.200

0.000

Other Loans

 

 

Loan from Bodies Corporate

(0.000)

30.000

 

 

 

SHORT TERM BORROWINGS

 

 

Working Capital Loan from Others

184.568

243.962

Other Borrowings

 

 

Bridge Loan (Against Subsidy)

12.149

27.945

Total

653.117

301.907

 

 

FINANCIAL AND OPERATIONAL REVIEW

 

During the year the Company has achieved nets Sales/Income from Operation of Rs. 1,14,76.922 Million as against Rs. 1,47,56.953 Million in previous year registering a decline of 22.22%. The Company incurred a net loss of Rs. 19,32.841 Million during the FY 2014-15 which is mainly attributed to depressed market for its products and lower capacity utilisation of plant impacting the net realisation and margin. Slower growth in several key sector of the economy has resulted in weaker domestic demand. On the other hand, mining crisis and rising inflation in the Country resulted in increase in the cost of raw materials and other overhead which could not be passed on the consumers.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economic Overview

 

Financial Year 2014-15 witnessed divergent trend among major economies. According to the International Monetary Fund, the global economy is expected to grow at 3.4% in Financial Year 2015-16. This is due to the fact that slowdown in production in China and Russia is expected to be more than off set by recovery of the developed economies and growth in South-East Asia.

 

The currency movements and interest rates continue to be risks for growth. Developed economies are expected to grow moderately. After poting stronger and broader growth at the end of 2014, the USA is carrying the momentum into 2015 with increased consumer spending and trade activity, falling unemployment rate and improved investor sentiment. The Indian GDP growth expanded to 7.2% in previous Financial Year due to improving economic sentiments but demand at the grass root level remained stagnant and is only expected to pick up from 2015. There is hope for improving economic scenario worldwide which may lead to a revival of demand with better opportunities.

 

Steel Industry

 

The Global steel demand slowed down due to weak demand in developed countries. China continued to dominate the global steel industry. In FY 2014-2015 the Indian steel industry recorded production of 81.54 Mnt. The production was impacted by the inadequacy of iron ore with inconsistency in quality and supply.

 

Demand from the sectors like infrastructure, real estate, automobiles, uses of specialised steel in automobiles and power sectors has put Indian steel industry on the world map. The country is maintaining the 4th largest steel producing country.

 

 

PART I

 

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

 (Rs. in Million)

 

Particulars

30.06.2015

 

 

Unaudited

1.

Income from  Operations  

 

 

a) Net Sales/Income from Operations

2579.724

 

(Net of excise duty)

 

 

b) Other Operating Income

3.492

 

Total Income from Operations (net)

2583.216

 

 

 

2.

Expenses

 

 

a) Cost of materials consumed

1398.562

 

b) Purchase of traded goods

914.945

 

c) Changes in inventories of finished goods,  work-in-progress and traded goods

(61.105)

 

d) Employee benefits expense

44.172

 

e) Depreciation and amortisation expense

172.177

 

f)  Power expenses

125.109

 

g) Other expenses

119.569

 

 

 

 

Total Expenses

2713.429

 

 

 

3.

Profit/(Loss) from Operations before other income, finance costs and Exceptional items (1-2)

(130.213)

4.

Other Income

4.041

5.

Profit/(Loss)  from ordinary activities before finance costs and exceptional Items (3+4)

(126.172)

6.

Finance costs

316.826

7.

Profit/(Loss)  from ordinary activities after finance costs but before exceptional Items (5-6)

(442.998)

8.

Exceptional Items

--

9.

Profit/ (Loss) from ordinary activities before tax (7-8)

(442.998)

10.

Tax expense

--

11.

Net Profit/ (Loss)  from ordinary activities after tax (9-10)

(442.998)

12.

Extraordinary items ( net of tax expense)

--

13.

Net Profit/ (Loss)  for the period (11-12)

(442.998)

14.

Paid - up Equity Share Capital

(face value per share Rs 10/- share)

1220.755

15.

Reserves excluding revaluation reserves as per the balance sheet

--

16.

Earnings Per Share (before and after extraordinary items) (of Rs. 10 each) (not annualised)

 

 

a) Basic

(3.63)

 

b) Diluted

(3.63)

PART II

 

Select Information for the Year Ended 30.06.2015

A.

PARTICULARS OF SHAREHOLDING

 

1.

Public Shareholding

 

 

- Number of Shares

40895500

 

- Percentage of Shareholding

33.50%

2.

Promoter and Promoter Group Shareholding

 

 

a) Pledged/Encumbered

 

 

- Number of Shares

81180000

 

- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

100.00%

 

-Percentage of Shares (as a % of the total share capital of the Company)

66.50%

 

b) Non-encumbered

 

 

- Number of Shares

--

 

-Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

--

 

-Percentage of Shares (as a % of the total share capital of the Company)

--

 

 

Particulars

Quarter Ended on June 30, 2015

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

 


NOTES:

 

1. The above results were reviewed by the Audit Committee and approved and taken on record by the board of directors at its meeting held on 13th August 2015.

 

2. The Company has received unsecured loans from promoters and promoter companies as promoter's contribution, to be converted into equity, at such price as will be determined in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations. Pending approval, the same has not been considered in the calculation of EPS.

 

3. During the quarter ended June 2015, the company has sold its stake in SKP Mining Private Limited and hence Joint Venture in the name of SKP Mining Private Limited with Impex Ferro Tech Limited has ceased to exist during the quarter ended June 2015.

 

4. The Company operates in one reportable segment only viz. Iron and Steel. However, the Company also generates power which is entirely used for the captive consumption. Hence, Segment Reporting is not applicable.

5. The figures for the previous year and period have been regrouped/ rearranged wherever considered necessary.

 

 

CONTINGENT LIABILITIES: (AS ON 31.03.2015)

 

a) In respect of Letter of Credit amounting to Rs. NIL Million (P.Y.- Rs. 16,31.000 Million) and Bank guarantee amounting to Rs. 53.920 Million ( P. Y. Rs. 48.220 Million).

 

b) Right to Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines, amounting to Rs. 4,44.000 Million.

 

c) Relating to Assessment year 2006-07, 2009-10 and 2012-13 a demand of Rs. 2.111 Million, Rs. 2.528 Million and Rs. 6,692.78 Million was raised by the Income Tax Department against which the Company has filed an application with respective department. An amount of Rs. 1.610 Million was paid under protest relating to A.Y. 2006-07.

 

d) Relating to Earlier Financial years a demand of Rs. 384.70 Million (P.Y. Rs. 18.698 Million) were raised by the CESTAT department against which appeal has been fi led by the Company. The Company has paid Rs. 5.000 Million under protest.

 

e) Relating to Financial year 2005-06 , 2006 -07, 2007-08, 2008-09, 2009-10, 2011-12 a demand of Rs. 22.289 Million, Rs. 91.791 Million, Rs. 35.816 Million, Rs. 2,12.770 Million, Rs. 3.728 Million and Rs. 44.629 Million respectively were raised by the Sales Tax department against which appeal has been fi led by the Company.

 

f) (i) A Suit of Rs. 100.000 Million fi led by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company has opposed the suit on the ground of inferior quality.

 

(ii) In the year 2013 M/s. Mjunction filed a money suit for recovery of outstanding from the Company, amount

being Rs. 0.040 Million. Hearing is under process.

 

g) The Ministry of Railway issued a Show Cause Notice in respect of Evasion of Freight on loading of Iron-ore at a

concessional rate and the penalty on such thereof amounting to Rs. 5,69.790 Million. The Company has fi led a write petition in the High Court in the year 2013 for issuing an unjustified notice.

 

 

 

FIXED ASSETS:

 

Tangible Assets

 

·         Land

·         Buildings

·         Plant and Equipment

·         Furniture and Fixtures

·         Office Equipment

·         Computer Equipments

·         Free hold Land

·         Lease hold land

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

No 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 registred 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. 65.55

UK Pound

1

Rs. 99.17

Euro

1

Rs. 73.08

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

IND

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

16

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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

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