MIRA INFORM REPORT

 

 

Report No. :

343152

Report Date :

07.10.2015

 

IDENTIFICATION DETAILS

 

Name :

BMW INDUSTRIES LIMITED

 

 

Registered Office :

119, Park Street, White House, 3rd Floor, Kolkata – 700016, West Bengal

Tel. No.:

91-33-40071704/ 22268882

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

21.10.1981

 

 

Com. Reg. No.:

21-034212

 

 

Capital Investment / Paid-up Capital :

Rs. 205.852 Million

 

 

CIN No.:

[Company Identification No.]

L51109WB1981PLC034212

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALB05362A

 

 

 

PAN No.:

[Permanent Account No.]

AABCB0986G

 

 

 

Legal Form :

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

 

Note:

1)     Company Shares are listed on Calcutta Stock Exchange.

2)     The Share of the Company are not been traded on CSE since 1997.

 

 

Line of Business :

Manufacturer of TMT Bars, Steel Structures, Steel Pipes and Tubes, GP Coils, CR Coils, Tower Sleeves and components and processing of Steel.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (42)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

BMW Industries Limited (BMWIL), the flagship company of the BMW group, was set up in 1981 by Mr. R G Bansal. The company operates in three business verticals: steel service center and structured products, transmission line towers, and infrastructure (roads).

 

During FY-14, the company have reported minimal decline into is total revenue and profit from its previous year 2013.

 

However, rating on company takes consideration on the promoter’s extensive experience in steel industry, stabilized operations, satisfactory financial risk profile characterized by low leverage, comfortable debt coverage indicators along with comfortable liquidity position.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

The company can be considered normal 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 – 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

BRICKWORK

Rating

Long term Bank Facilities=BBB

Rating Explanation

Moderate degree of safety and moderate credit risk

Date

January 19, 2015

 

 

Rating Agency Name

BRICKWORK

Rating

Short term Bank Facilities=A3

Rating Explanation

Moderate degree of safety and higher credit risk

Date

January 19, 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: 91-33-40071704)

 

 

LOCATIONS

 

Registered Office :

119, Park Street, White House, 3rd Floor, Kolkata – 700016, West Bengal, India

Tel. No.:

91-33-40071704/ 22268882

Fax No.:

91-33-40071704

E-Mail :

info@bmwil.com

legal@bmwil.com

Website :

http://www.bmwil.co.in

 

 

Factories :

Located at:

 

1)     Ramdas Oil Mill Compound, Manifit, P.O: Telco, Jamshedpur, Jharkhand, India

2)     Junglepur, PO: Andul Mouri, NH-6, Howrah, West Bengal, India

3)     G.T. Road (N), Ghusuri, Howrah, West Bengal, India

4)     B-I, Phase-II, Adityapur Industrial Area, Jamshedpur, Jharkhand, Bihar, India

5)     M-1, Large Sector, Gamharia, District-Seraikella-Kharswar, Jamshedpur, Jharkhand, India

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. Ram Gopal Bansal

Designation :

Chairman and Director

 

 

Name :

Mr. Harsh Bansal

Designation :

Managing Director

 

 

Name :

Mr. Vivek Kumar Bansal

Designation :

Managing Director

 

 

Name :

Mr. Debasish Basu

Designation :

Non Executive Director

 

 

Name :

Mr. Sunil Kumar Parik

Designation :

Non Executive Director

 

 

Name :

Mr. Prahlad Choudhury

Designation :

Non Executive Director

 

 

Name :

Mr. Ram Priya Sharan

Designation :

Non Executive Director

 

 

Name :

Mr. Ramji Prasad Singh

Designation :

Non Executive Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Namrata Modi

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2014

 

Class of Shareholders

No. of Shares

 

Percentage of Holding

A. PROMOTERS/ PROMOTER GROUP

 

 

A. Indian promoters

12,545,633

60.94%

B. Foreign promoter

Nil

0.00%

TOTAL FOR PROMOTER GROUP (A)

12,545,633

60.94%

B. PUBLIC SHAREHOLDINGS

 

 

i Institutional

Nil

0.00%

ii Non institutional

 

 

Bodies corporate

8,039,355

39.06%

Individuals

200

0.00%

TOTAL PUBLIC SHAREHOLDINGS (B)

8,039,555

39.06%

GRAND TOTAL (A) + (B)

20,585,188

100.00%

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of TMT Bars, Steel Structures, Steel Pipes and Tubes, GP Coils, CR Coils, Tower Sleeves and components and processing of Steel.

 

 

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 :

Not Divulged

 

 

Bankers :

Bank Name:

Axis Bank Limited

Branch:

Rishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad- 380006, Gujarat, India

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

 

·         United Bank of India

·         Bank of India

·         UCO Bank

·         Indian Overseas Bank

·         Union Bank of India

·         Bank of Baroda

·         Dena Bank

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Term Loan from Banks

 

 

Current Maturities disclosed

3002.982

2952.158

 

 

 

SHORT TERM BORROWINGS

 

 

Cash credits from banks

2408.364

1721.108

 

 

 

Total

5411.346

4673.266

 

Banking Relations :

--

 

 

Financial Institution :

·         Tata Capital Financial Services Limited

One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai- 400001, Maharashtra, India

 

 

Auditors :

 

Name :

Deoki Bijay and Company

Chartered Accountants

 

 

Solicitors and Advocates :

 

Name :

L. P. Agarwala and Company

Chartered Accountants

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiaries Companies :

·         Sail‐Bansal Service Centre Limited

·         Confident Financial Consultancy Private Limited

·         Perfect Investment Consultancy Private Limited

·         Sidhant Investment Advisory Private Limited

·         Siddhi Vinayak Commosales Private Limited

·         Shri Hari Vincom Private Limited

·         Narayan Dealcom Private Limited

·         Fairplan Vintrade Private Limited

·         Nageshwara Tradelink Private Limited

·         Bansal Nepal Private Limited

 

 

Enterprises over which Key

Managerial Personnel has Significant influence :

JIT Transport Organization

 

 

CAPITAL STRUCTURE

 

AFTER 25.09.2014

 

Authorised Capital : Rs. 500.000 Million

 

Issued, Subscribed & Paid-up Capital : Rs 225.086 Million

 

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5,00,00,000

Equity Shares

Rs. 10/- each

Rs. 500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,05,85,188

Equity Shares

Rs. 10/- each

Rs. 205.852 Million

 

 

 

 

 

During the year the company has alloted 15,74,250 equity shares of face value of Rs 10/‐ each at a price of Rs 160/‐ per equity share including a premium of Rs 150/‐ per equity share ranking pari‐passu with existing equity shares, to the promoters and Non‐Promoters of the company on preferential allotment basis in accordance with SEBI (Issue of capital and disclosure requirements) regulation, 2009

 

c) 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 dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of 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 amount in proportion to the number of equity shares held by the shareholders.

 

d) Shares held by the holding company/the ultimate holding company and / or their subsidiaries / associates

 

The Company does not have any holding co.

 

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

 

Particulars

No. of Shares

% Holding

Equity shares of Rs. 10/‐ each fully paid up

 

 

Ram Gopal Bansal

3,575,000

17.37%

Harsh Kumar Bansal

1,844,725

8.96%

Vivek Kumar Bansal

1,402,208

6.81%

Bansal Business Private Limited

993,800

4.83%

Jani Fincom Private Limited

1,092,375

5.31%

Murray Financial Services Private Limited

1,014,601

4.93%

 

f) Reconciliation of no. of shares and amount outstanding is set out below:‐

 

Particulars

No. of Shares

Amount

Shares outstanding at the beginning of the year

19,010,938

190.109

Shares issued during the year

1,574,250

15.743

Shares bought back during the year

--

--

Shares outstanding at the close of the year

20,585,188

205.852

 

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

205.852

190.109

124.000

(b) Reserves & Surplus

3078.305

2638.239

1423.287

(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)

3284.157

2828.348

1547.287

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

3494.783

3503.954

2095.865

(b) Deferred tax liabilities (Net)

208.793

163.693

154.410

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

6.750

1.000

0.500

Total Non-current Liabilities (3)

3710.326

3668.647

2250.775

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2408.364

1721.108

1715.965

(b) Trade payables

258.797

627.942

724.190

(c) Other current liabilities

719.541

538.281

527.837

(d) Short-term provisions

125.706

99.765

68.429

Total Current Liabilities (4)

3512.408

2987.096

3036.421

 

 

 

 

TOTAL

10506.891

9484.091

6834.483

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

5439.723

1496.255

1585.243

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

316.316

2747.306

724.183

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

98.362

98.326

149.012

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

35.758

1116.563

618.753

(e) Other Non-current assets

1.900

1.900

1.900

Total Non-Current Assets

5892.059

5460.350

3079.091

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1646.481

1353.498

1268.837

(c) Trade receivables

1818.604

1653.678

1424.246

(d) Cash and cash equivalents

67.771

48.272

80.486

(e) Short-term loans and advances

1081.230

967.602

981.481

(f) Other current assets

0.746

0.691

0.342

Total Current Assets

4614.832

4023.741

3755.392

 

 

 

 

TOTAL

10506.891

9484.091

6834.483

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from Operation

5473.260

7448.024

7307.240

 

 

Other Income

56.533

71.976

40.632

 

 

TOTAL                                     (A)

5529.793

7520.000

7347.872

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Raw Materials and Components Consumed

3731.700

5786.127

5548.813

 

 

Purchases of Stock-in-Trade

122.027

323.029

288.112

 

 

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

(123.926)

(5.559)

(3.994)

 

 

Employees benefits expense

123.349

142.441

157.094

 

 

Other expenses

734.930

513.819

677.728

 

 

TOTAL                                     (B)

4588.080

6759.857

6667.753

 

 

 

 

 

 

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

941.713

760.143

680.119

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

404.346

333.926

332.389

 

 

 

 

 

 

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

537.367

426.217

347.730

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

275.119

82.099

76.330

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

262.248

344.118

271.400

 

 

 

 

 

Less

TAX                                                                  (H)

45.462

104.681

86.187

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

216.786

239.437

185.213

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of exports

0.000

103.769

96.914

 

TOTAL EARNINGS

0.000

103.769

96.914

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Stores & Spares

0.000

24.341

0.551

 

 

Capital Goods

116.882

58.707

24.515

 

TOTAL IMPORTS

116.882

83.048

25.066

 

 

 

 

 

 

Earnings Per Share (Rs.)

11.28

17.92

14.94

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

 

 

 

Current Maturities of Term loan from Banks

582.440

431.188

160.835

Current Maturities of Term loans from other parties

0.000

0.000

252.477

Total

582.440

431.188

413.312

 

 

 

 

Cash Generated from Operations

1137.213

(100.455)

193.346

 

 

 

 

Net Cash Flow From Operating Activities

1133.213

(192.486)

105.603

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

3.96

3.21

2.53

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

17.21

10.21

9.31

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.60

5.18

4.55

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.12

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.97

2.00

2.73

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.31

1.35

1.24

 

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

 

 

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

124.000

190.109

205.852

Reserves & Surplus

1423.287

2638.239

3078.305

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

1547.287

2828.348

3284.157

 

 

 

 

Long-term borrowings

2095.865

3503.954

3494.783

Short term borrowings

1715.965

1721.108

2408.364

CURRENT MATURITIES OF LONG-TERM DEBTS

413.312

431.188

582.440

Total borrowings

4225.142

5656.250

6485.587

Debt/Equity ratio

2.731

2.000

1.975

 

 

 

 

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

7307.240

7448.024

5473.260

 

 

1.927

(26.514)

 

 

 

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

7307.240

7448.024

5473.260

Profit

185.213

239.437

216.786

 

2.53%

3.21%

3.96%

 

 

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

No

8

Designation of contact person

No

9

Promoter’s background

No

10

Date of Birth of Proprietor / Partners / Directors

No

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10590573

17/08/2015

8,274,500.00

AXIS BANK LIMITED

RISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GA
RDEN ELLISBRIDGE, AHMEDABAD- 380006, GUJARAT, INDIA

C64029937

2

10588121

27/07/2015

31,486,000.00

AXIS BANK LIMITED

RISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GA
RDEN ELLISBRIDGE, AHMEDABAD- 380006, GUJARAT, INDIA

C62629381

3

10446285

31/07/2013

161,200,000.00

UCO BANK

FLAGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD
,, KOLKATA, WEST BENGAL - 700001, INDIA

B83661504

4

10441736

26/07/2013

2,175,000.00

ICICI BANK LIMITED

1A, A.J.C. BOSE ROAD, KOLKATA- 700020, WEST BENGAL, INDIA

B81539256

5

10435109

25/06/2013

250,000,000.00

TATA CAPITAL FINANCIAL SERVICES LIMITED

ONE FORBES,, DR. V. B. GANDHI MARG, FORT, MUMBAI- 400001,
MAHARASHTRA, INDIA

B78871423

6

10432995

02/05/2013

1,440,400,000.00

UNITED BANK OF INDIA

CORPORATE FINANCE BRANCH, KOLKATA,, 11, HEMANTA B
ASU SARANI,, KOLKATA- 700001, WEST BENGAL, INDIA

B77940005

7

10416350

07/03/2013

60,000,000.00

UCO BANK

FLAGSHIP CORPORATE BRANCH, 3, NETAJI SUBHAS ROAD,
, KOLKATA- 700001, WEST BENGAL, INDIA

B72180706

8

10394647

17/12/2012

100,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA- 390015, GUJARAT, INDIA

B65045965

9

10368105

05/07/2012

1,100,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W
, MUMBAI- 400013, MAHARASHTRA, INDIA

B44712388

10

10324080

15/09/2012 *

500,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA- 390015, GUJARAT, INDIA

B61766416

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

From Body Corporates

491.801

551.796

 

 

 

Total

491.801

551.796

 

 

CORPORATE INFORMATION:

 

BMW Industries Limited (the ‘Company’), was incorporated at Kolkata, State of West Bengal. The main activities of the Company include manufacturing of TMT Bars, Steel Structures, Steel Pipes and Tubes, GP Coils, CR Coils, Tower Sleeves and components and processing of Steel.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Industry overview and operational achievement

 

BMWIL has categorized its business in three strategic divisions:

 

• Tower Division

• Steel service centres (SScs)

• Infrastructure Division.

 

A. Tower division

 

There is a shift in demand from Telecom tower to Transmission tower. BMWIL has an integrated Transmission tower line with strong customer like Alstom, EMC, Tata Power, Tata Projects and State Electricity board etc. Due to deficit power facing in India there is a growing preference for integrated suppliers like BMWIL who possess in‐house facility for fabrication, galvanization and installation. Company also has presence in Telecom sector with strong customer base like BSNL, Reliance Telecom etc

 

B. Steel Service Centres (SSCs)

 

India emerged among top ten largest producer of crude steel in 2012 and is set to reach the first spot by 2015‐16. In a Scenario where 80% of the industry is unorganized with low processing capacities, BMWIL is optimistic of its growth. The company major customers are opting for a single‐vendor system to ensure quality and accountability.

 

C. Infrastructure division

 

With the growing impetus on infrastructure, BMWIL expects to ride buoyant India’s economic and infrastructure development through a backward integration into steel manufacture. Besides, the company possesses a five‐year experience in road building and relevant project management. Apart from a strong customer in other divisions, BMWIL has a strong customer base like State Governments of West Bengal and Jharkhand.

 

OUTLOOK:

 

To spearhead growth, BMWIL is spreading its reach nationally through strategic acquisitions. With continuously achievement in all division BMWIL company, enhance investment efficiency.

 

FINANCIAL PERFORMANCE:

 

During the financial year, the Company is maintaining its stability in such competitive market, leading to increase in revenue.

 

 

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED SEPTEMBER 30, 2014

 (Rs. in Million)

 

Particulars

30.09.2014

 

 

Unaudited

1.

a) Net Sales/Income from Operations

 

 

Gross Sales

1798.915

 

Less: Excise Duty on Sales

20.000

 

Less: VAT/ Sales Tax & Turnover Tax

0.000

 

Net Sales/ Income from Operations

1778.915

 

b) Other Operating Income

5.498

 

 

 

2.

Expenditure

 

 

a) (increase)/decrease in stock in trade and Work in progress

63.078

 

b) Consumption of Raw Material

1265.046

 

c) Purchase of traded goods

0.000

 

d) Employee Cost

50.037

 

e) Depreciation

76.823

 

f)  Administrative and Selling Expenses

69.815

 

g) Exchange Fluctuation Loss/ (Gain)

0.000

 

h) Other expenses

92.338

 

 

 

 

Total Expenses

1617.137

 

 

 

3.

Profit from Operations before other income, Interest and Exceptional items

167.276

4.

Other Income

0.000

5.

Profit before Interest and Exceptional Items

167.276

6.

Interest

117.019

7.

Profit after Interest but before Exceptional Items

50.257

8.

Exceptional Items

0.000

9.

Profit (+)/ Loss(-) from ordinary activities before tax

66.762

10.

Tax expense

 

 

For Current tax

14.688

 

For Deferred tax

 

 

For Wealth tax

 

 

For MAT Credit

14.690

 

For Earlier Year

 

11.

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

66.762

12.

Extraordinary items ( net of tax expense)

0.000

13.

Net Profit(+)/ Loss(-) from the period

66.762

14.

Paid - up Equity Share Capital  (face value Rs 10/- per share)

205.851

15.

Reserves excluding revaluation reserves

0.000

16.

a) Basic & Diluted EPS (Rs.) before Extraordinary items

0.032

 

b) Basic & Diluted EPS (Rs.) after Extraordinary items

0.032

17.

Public Shareholding

 

 

- Number of Shares

8039555

 

- Percentage of Shareholding

39.06

18.

Promoter and Promoter Group Shareholding

 

 

a) Pledged/Encumbered

 

 

- Number of Shares

0.000

 

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

0.000

 

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

0.000

 

b) Non-encumbered

 

 

- Number of Shares

12545633

 

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

60.94

 

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

60.94

 

 

 

* Not annualized & admin exp. Added in other exp.

 

NOTES:

 

1 The above results have been reviewed by the Audit Committee and taken on record by the Board

2 The previous periods figures have been regrouped and reclassified wherever necessary.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

Counter guarantees issued by the  Company to banks, in respect of bank guarantees issued

234.385

211.470

Corporate Guarantee issued by the Company, on behalf of Subsidiary Company‐ Sail Bansal Service Centre Limited

60.000

60.000

Total

294.385

271.470


FIXED ASSETS:

 

Tangible Assets

 

·         Freehold Land and Building

·         Leasehold Land and Land Development

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

 

 

 

 

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 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. 65.39

UK Pound

1

Rs. 99.05

Euro

1

Rs. 73.19

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

IND

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--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

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

 

42

 

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.