MIRA INFORM REPORT
|
Report No. : |
346428 |
|
Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
THE STATE TRADING CORPORATION OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi-11001 |
|
Tel. No.: |
91-11-23313177/ 23701010 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
18.05.1956 |
|
|
|
|
Com. Reg. No.: |
55-002674 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 600.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1956GOI002674 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELT00171D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT0102F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged Trading Activities. |
|
|
|
|
No. of Employees
: |
738 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 30000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Miniratna Category-1 Central Public Sector Enterprise and
it is recognized by the Government of India (GOI) as a Star Trading House. It
is a trading company engaged primarily in the export and import operations.
The company functions under the administrative control of the Ministry of
Commerce and Industry, GOI. The ratings on company’s constrained by moderate financial profile and
high amount of outstanding trade receivable, average debt coverage indicators
and very low profitability margin along with cash and cash equivalents during
FY-15. However, the rating draw strength from the long and established track
record of operations and the predominant ownership of the Government of
India. Trade relations seems to be fair. Business is active. Payment terms
are reported to be slow but correct. In view of aforesaid, the company can be considered for business
dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
CARE |
|
Rating |
Long term Bank Facilities = BB |
|
Rating Explanation |
Inadequate-credit-quality and high credit risk. |
|
Date |
April 2015 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank Facilities = A4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
April 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 (Tel No.: 91-11-23313177)
LOCATIONS
|
Registered/ Corproate Office : |
Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi – 110 001, India |
|
Tel. No.: |
91-11-23313177/ 23701010 |
|
Fax No.: |
91-11-23701191/ 23701123/
23462277 |
|
E-Mail : |
|
|
|
|
|
Branch Offices : |
Located at:
Sub Branches
located at:
|
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. Khaleel Rahim |
|
Designation : |
Managing Director |
|
Address : |
B-258, Ganpat Andalkar Block, Asian Games Village, New Delhi - 110049, India |
|
Date of Appointment : |
21.11.2008 |
|
DIN No.: |
02455606 |
|
|
|
|
Name : |
Mr. Jitendra Kumar Dadoo |
|
Designation : |
Nominee Director |
|
Address : |
11,Eac Flats, 16, Rajpur Road,, New Delhi -110054, India |
|
Date of Appointment : |
06.08.2015 |
|
DIN No.: |
02481702 |
|
|
|
|
Name : |
Mr. Ajay Kumar Bhalla |
|
Designation : |
Nominee Directo |
|
Address : |
159 D-Ii Flats (Officers Flats), Kidwai Nagar (West), Delhi - 110023, India |
|
Date of Appointment : |
29.04.2015 |
|
DIN No.: |
03151465 |
|
|
|
|
Name : |
Mr. Rajiv Chopra |
|
Designation : |
Whole-Time Director |
|
Address : |
40 Shanti Vihar, Vikas Marg Extension, New Delhi - 110092, India |
|
Date of Appointment : |
01.01.2013 |
|
DIN No.: |
06466326 |
|
|
|
|
Name : |
Mr. Sanjeev Kumar Sharma |
|
Designation : |
Director |
|
Address : |
Flat-416, Bhagirathi Apartment, B-9/14, Sector 62, Noida - 201301, Uttar Pradesh, India |
|
Date of Birth/Age : |
16.07.2014 |
|
Qualification : |
06942536 |
|
|
|
|
Name : |
Mr. M. M. Sharma |
|
Designation : |
Functional Director |
|
|
|
|
PART TIME OFFICIAL DIRECTOR |
|
|
(GOVERNMENT NOMINEES) |
|
|
|
|
|
PART TIME NON-OFFICIAL DIRECTOR |
|
|
(INDEPENDENT NOMINEES) |
|
KEY EXECUTIVES
|
Name : |
Mr. Rakesh Kumar Gogia |
|
Designation : |
Company Secretary |
|
Address : |
F-23 A, Moti Nagar, New Delhi - 110015, India |
|
Date of Appointment : |
02.11.2010 |
|
PAN No.: |
AEQPG4443K |
|
|
|
|
Name : |
Mr. A K Bhalla |
|
Designation : |
Additional Secretary, Ministry of Commerce |
|
|
|
|
Name : |
Mr. J K Dadoo |
|
Designation : |
Additional Secretary and Financial Advisor, Ministry of Commerce |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2015
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of Total No. of Shares |
|
|
||
|
(A)
Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
54000000 |
90.00 |
|
|
54000000 |
90.00 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
54000000 |
90.00 |
|
(B)
Public Shareholding |
||
|
|
|
|
|
|
9099 |
0.02 |
|
|
3815 |
0.01 |
|
|
1149320 |
1.92 |
|
|
73961 |
0.12 |
|
|
1236195 |
2.06 |
|
|
|
|
|
|
1785750 |
2.98 |
|
|
|
|
|
|
2854653 |
4.76 |
|
|
57800 |
0.10 |
|
|
65602 |
0.11 |
|
|
64002 |
0.11 |
|
|
1600 |
0.00 |
|
|
4763805 |
7.94 |
|
Total
Public shareholding (B) |
6000000 |
10.00 |
|
Total
(A)+(B) |
60000000 |
100.00 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
60000000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged Trading Activities. |
|
|
|
|
Products / Services : |
Trading Activities |
|
|
|
|
Brand Names : |
Not Divulged |
|
|
|
|
Agencies Held : |
Not Divulged |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
738 (Approximately) |
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Bankers : |
·
Export-Import Bank Of India, Centre One Building, Floor 21,, World Trade
Centre Complex, Cuffe Parade, Mumbai – 400005, Maharashtra India · SYNDICATE BANK, International Business Branch, B-39, 1st Floor, Middle Circle, Connaught Place, New Delhi -110001, India |
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Facilities : |
|
|
Statutory Auditors : |
|
|
Name : |
P. Jain and Company Chartered Accountants |
|
Address : |
210, Arunachal
Bhawan, 2nd Floor, 19, Barakhaba Road, New Delhi – 110001, India |
|
SECRETARIAL AUDITOR |
|
|
Name : |
Chandrasekaran Associates Company Secretaries |
|
Address : |
11-F, Pocket-IV, Mayur Vihar Phase-I, Delhi - 110091, India |
|
|
|
|
Audit Committee
: |
|
|
|
Chairman
Member
Member |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries : |
STCL Limited. (Wholly Owned Subsidiary) |
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000
Million |
|
|
|
|
|
Details of Bonus Issue during the preceding
five years :
Nil
Equity shares issued and subscribed do not
enjoy any differential rights
Reconciliation of no. of shares :
|
Class of share
capital |
Opening
as at 01.04.2014 |
issued
during the year |
Shares
bought back during the year |
Closing
as at 31.03.2015 |
|
Equity share of Rs.10/- each |
6,00,00,000 |
-- |
-- |
6,00,00,000 |
|
Previous Year |
6,00,00,000 |
-- |
-- |
6,00,00,000 |
Details of Share holders holding more than 5%
shares
|
Name |
31.03.2015 |
% of shares held |
|
Govt. of India |
5,40,00,000 |
90.00 |
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 |
600.000 |
600.000 |
600.000 |
|
(b) Reserves & Surplus |
9789.200 |
377.300 |
5299.300 |
|
(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) |
10389.200 |
977.300 |
5899.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1762.800 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
11670.600 |
11532.200 |
11567.100 |
|
(d) long-term provisions |
1014.700 |
1001.200 |
732.400 |
|
Total
Non-current Liabilities (3) |
14448.100 |
12533.400 |
12299.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
11278.600 |
12878.000 |
15053.900 |
|
(b) Trade payables |
7264.600 |
3043.600 |
9121.000 |
|
(c) Other current liabilities |
3050.200 |
3526.500 |
2130.100 |
|
(d) Short-term provisions |
158.600 |
164.200 |
292.300 |
|
Total
Current Liabilities (4) |
21752.000 |
19612.300 |
26597.300 |
|
|
|
|
|
|
TOTAL |
46589.300 |
33123.000 |
44796.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
9595.500 |
623.900 |
577.000 |
|
(ii) Intangible Assets |
0.000 |
0.400 |
0.700 |
|
(iii) Capital work-in-progress |
3.900 |
8.600 |
86.900 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2.100 |
3.100 |
3.100 |
|
(c) Deferred tax assets (net) |
730.100 |
730.100 |
730.100 |
|
(d) Long-term Loan and Advances |
163.800 |
258.200 |
1085.400 |
|
(e) Other Non-current assets |
11116.700 |
10609.900 |
13504.800 |
|
Total
Non-Current Assets |
21612.100 |
12234.200 |
15988.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
55.000 |
9.700 |
435.000 |
|
(c) Trade receivables |
24252.500 |
19684.400 |
22891.100 |
|
(d) Cash and cash equivalents |
65.100 |
581.300 |
2481.400 |
|
(e) Short-term loans and
advances |
389.800 |
341.900 |
413.100 |
|
(f) Other current assets |
214.800 |
271.500 |
2587.500 |
|
Total
Current Assets |
24977.200 |
20888.800 |
28808.100 |
|
|
|
|
|
|
TOTAL |
46589.300 |
33123.000 |
44796.100 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Revenue from Operations |
144940.100 |
154486.300 |
190416.200 |
|
|
Other Income |
2415.300 |
2089.100 |
2589.000 |
|
|
TOTAL
(A) |
147355.400 |
156575.400 |
193005.200 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
0.500 |
1.600 |
1.000 |
|
|
Purchases of Stock-in-Trade |
143886.100 |
152141.000 |
184143.700 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(44.200) |
424.900 |
5002.400 |
|
|
Employees benefits expense |
1004.100 |
1330.800 |
1065.400 |
|
|
Exceptional Items -
Debit/(Credit) |
33.100 |
5656.300 |
1556.800 |
|
|
Withdrawal from Export Import
Contingent Reserve |
0.000 |
0.000 |
(959.600) |
|
|
Prior Period Adjustment net -
(Debit)/Credit |
(11.100) |
(1.400) |
(5.800) |
|
|
Other expenses |
394.900 |
358.300 |
358.800 |
|
|
TOTAL
(B) |
145263.400 |
159911.500 |
191162.700 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
2092.000 |
(3336.100) |
1842.500 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1577.800 |
1544.100 |
1662.500 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
514.200 |
(4880.200) |
180.000 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
200.200 |
43.600 |
35.800 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX (E-F) (G) |
314.000 |
(4923.800) |
144.200 |
|
|
|
|
|
|
|
Less |
TAX (H) |
52.100 |
(1.800) |
(35.300) |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
261.900 |
(4922.000) |
179.500 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S (J+K+L-M) |
261.900 |
(4922.000) |
179.500 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
Export of goods on FOB basis* |
1263.800 |
17809.600 |
15594.900 |
|
|
Others |
0.000 |
0.000 |
136.300 |
|
|
TOTAL
EARNINGS |
1263.800 |
17809.600 |
15731.200 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Import of Trading Goods
including freight etc.* |
111860.300 |
123897.000 |
NA |
|
|
TOTAL
IMPORTS |
111860.300 |
123897.000 |
VA |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
4.36 |
(82.03) |
2.99 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
300.000 |
NA |
NA |
|
Cash generated from operations |
236.700 |
1882.200 |
5321.600 |
|
Net cash flow from operating activity |
243.700 |
1883.600 |
5327.300 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
0.18 |
(3.19) |
0.09 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
1.44 |
(2.16) |
0.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.68 |
(15.21) |
0.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
(5.04) |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.26 |
13.18 |
2.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.15 |
1.07 |
1.08 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
Market Value |
Rs.164.30/- |
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 |
600.000 |
600.000 |
600.000 |
|
Reserves & Surplus |
5299.300 |
377.300 |
9789.200 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
5899.300 |
977.300 |
10389.200 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
1762.800 |
|
Short term borrowings |
15053.900 |
12878.000 |
11278.600 |
|
Total
borrowings |
15053.900 |
12878.000 |
13341.400 |
|
Debt/Equity
ratio |
2.552 |
13.177 |
1.284 |
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 |
190416.200 |
154486.300 |
144940.100 |
|
|
|
(18.869) |
(6.179) |
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 |
190416.200 |
154486.300 |
144940.100 |
|
Profit / (Loss) |
179.500 |
(4922.000) |
261.900 |
|
|
0.09% |
(3.19%) |
0.18% |
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 |
No |
|
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 |
OPERATIONS AND BUSINESS
PERFORMANCE
The Company achieved a turnover of Rs. 143970.000 Million during the year 2014-15. The turnover was marginally lower than the previous year due to non-allocation of wheat from Central Pool stocks by the Govt. for exports that resulted into a decline of Rs.16840.000 Million in the turnover and changes in Govt. policies with regard to import of gold which led to a decline of Rs. 30620.000 Million in the turnover vis-à-vis the previous year. The loss of turnover was, to a large extent, made good by undertaking exports to Iran and higher import of fertilizers in addition to other new initiatives like import of cashew, domestic sale of fertilizers and cardamom auctions.
MANAGEMENT DISCUSSION
& ANALYSIS REPORT
WORLD ECONOMIC
OVERVIEW
Legacies of both the global meltdown and the euro zone crisis being still visible, world economy continued to grow moderately at 3.4 per cent in 2014, same as in 2013. Advanced economies grew at 1.8 per cent in 2014 visà- vis 1.4 per cent in 2013. However, a slowdown was witnessed in emerging markets and developing economies where the growth slowed down from 5 per cent in 2013 to 4.6 per cent in 2014. Despite the slowdown, emerging markets and developing economies still accounted for three-fourths of global growth in 2014.
The recovery in the United States seems to be stabilizing with strong output and rising employment figures and economic growth touching 2.4 per cent in 2014. In Europe, the picture was mixed, with many countries recording stronger growth, while some others continued to suffer from weak growth driven by protracted internal demand, high unemployment, and financial fragmentation. With slight improvement in consumption supported by lower oil prices and higher net exports, Euro region grew at about 1 per cent vis-à-vis a negative growth rate last year. In
Japan, growth was close to zero in 2014, reflecting weak consumption and plummeting residential investment.
Large economies in the emerging markets and developing economies such as China and CIS experienced a slowdown in 2014. China’s growth fell from 7.8 per cent in 2013 to 7.4 per cent in 2014 mostly due to decline in investment growth and correction in real estate in the second half of 2014. The increase in geopolitical tensions, declining confidence, international sanctions and the repercussions of the oil price decline led to poor performance by Russian Economy which grew at only 0.6 per cent in 2014.
The year 2014 saw a substantial decline in the price of oil by almost 50 per cent during Jun.’14 to Dec.’14. The large fall in oil prices was driven by demand and supply factors. The year saw a steady rise in production in countries not belonging to OPEC, especially the United States and faster-than-expected recovery of production in some stressed OPEC producers like Iraq. The oil sector also witnessed some weakness in the demand for oil driven by improvements in energy efficiency.
The sharp fall in oil prices also led to a fall in commodity prices. Metal prices also fell due to slowing of demand growth in China and significant increases in the supply of most metals. Food prices declined mostly on account of favourable harvests. The overall commodity price index during 2014 declined by 6.1 per cent compared to 2013.
OVERVIEW OF INDIAN
ECONOMY
India emerged as one of the fastest growing economies during 2014 recording a robust 7.2 per cent growth in GDP rate. The year saw marked decline in inflation, and comfortable external position, helped by positive policies and lower global oil prices. The year also witnessed a sea change in the macroeconomic parameters and major policy reforms in the economy such as de-regulation of diesel prices, taxing energy products, replacing cooking gas subsidy by direct transfer on national scale, introducing reforms in the coal sector by allocation of coal blocks through auctions, increasing FDI caps in defence, etc.
The improvement came on the back of better performance in the industrial sector, stable growth in the services sector and a surprisingly resilient agriculture sector. Policy decisions on the environmental clearances and mining licenses helped prop up sentiments, while a push to some stuck projects aided the growth prospects. The growth in 2014-15 was largely driven by domestic demand as there was hardly any external support to growth in 2014-15. This is evident from a projected negative growth of 1.54 per cent in exports and a negative growth of 0.59 per cent in imports. The deceleration in imports owe substantially to the sharp decline in international oil prices leading to compressed oil import bill.
Growth rate in Gross Value Added (GVA) at basic prices in agriculture declined from 3.7 per cent in 2013-14 to
1.1 per cent in 2014-15, largely due to erratic monsoon affecting the summer crop.
The manufacturing sector maintained the growth momentum in 2014-15 registering a growth in GVA at basic prices of 6.8 per cent vis-à-vis 5.3 per cent in 2013-14.
The services sector continued to flourish with a growth of 10.6 per cent, higher than 9.1 per cent recorded in 2013-14. The growth in the services sector was mainly due to better performance in financial, real estate and professional services besides public administration, defence and other services. There was also good growth in trade, hotels, transport, communication and related services.
Within the mining sector, multiple clearances on the policy front helped, particularly in the case of coal production.
Coal output rose despite the cancellation of 204 mining licenses, essentially showing the government‘s intent to bring down coal imports. Steel production suffered lower production volumes on account of a massive decline in global prices. Overall, core industries also performed better than the previous year with the industry sector growing by 5.9 per cent in 2014-15 as compared to 4.5 per cent in the previous year. Electricity production registered a growth of 9.6 per cent in 2014-15 as compared to 4.8 per cent in the previous year.
The inflation was at its lowest level in seven years with average inflation in CPI for industrial workers declining to 6.3 per cent during 2014-15 from 9.7 per cent in the preceding year.
Cumulative value of exports during 2014-15 was US$ 309.6 billion as against US$ 314.4 billion whereas cumulative value of imports stood at US$ 447.5 billion as against US$ 450.2 billion. Thus, both exports and imports declined respectively by 1.54 per cent and 0.59 per cent in 2014-15 compared to last year.
The foreign exchange reserves of the country reached an all time high of US$ 341.4 billion as on March 27, 2015.
The rupee had hit its rock bottom on August 28, 2013 at 68.83 per dollar. Since then, it appreciated nine per cent.
The fortunes of the currency and reserves have changed, initially due to a few bold and innovative steps by Reserve Bank of India (RBI) and subsequently due to improving investor sentiments.
STC’s PERFORMANCE
The Company achieved a turnover of Rs. 143970.000 Million during the year 2014-15. The turnover was marginally lower than the previous year due to non-allocation of wheat from Central Pool stocks by the Govt. for exports that resulted in a decline of Rs. 16840.000 Million in the turnover and changes in Govt. policies with regard to import of gold which led to a decline of Rs. 30620.000 Million in the turnover vis-à-vis the previous year. The loss of turnover was, to a large extent, made good by undertaking exports to Iran and higher import of fertilizers in addition to other new initiatives like import of cashew, domestic sale of fertilizers and cardamom auction.
SEGMENT-WISE
PERFORMANCE & OUTLOOK
Exports
During the year, the Company achieved an export turnover of Rs. 18840.000 Million, which is the highest export turnover recorded in the last six years. The Company had entered into a long term contract with an Iranian Government company for export of 2.5 million MTs of steel plates/coils. During the year 2014-15, exports worth Rs. 16890.000 Million were made to Iran against this contract.
The Company expects to shortly commence exports against contracts entered into with Iranian Railways for exports of 2.5 lakh MTs of rails during 2015-16.
Besides above, the Company exported agro-chemicals amounting to Rs. 340.000 Million and steel products worth Rs. 490.000 Million to various other buyers in Iran.
The Company is in advanced stages of discussion with various parties in Iran for export of railway wagons.
Discussions are also underway for import of iron ore and export of iron ore pellets involving an Iranian Government company and another Indian public sector company. STC is also exploring opportunities of trade in the areas like exports of steel plates, seamless pipes, agro-commodities, gold jewellery, pharma products, engineering goods and import of urea, crude oil, LPG, natural gas, etc.
The Company exported wheat worth Rs. 900.000 Million during the 2014-15 against fulfilment of contracts of previous years. However, no fresh exports of wheat could be made due to GOI decision not to export any quantities of wheat out of Central Pool Stocks as against exports of Rs. 17740.000 Million worth of wheat during 2013-14. The Company also exported small quantities of maize and rice during the year 2014-15.
Imports
The import turnover of Rs. 120420.000 Million during 2014-15 was lower by 11 per cent vis-a-vis previous year mainly due to a substantial decline in imports of bullion. Major highlights of performance on import front are as under:
Bullion
In the recent years, Company’s imports of bullion have seen a decline due to frequent changes in Government policies relating to import of gold. Also, with a number of Trading Houses having been allowed imports w.e.f. May
2014 and scrapping of 20:80 scheme w.e.f. November 2014, the competition increased leading to thin margins and decline in bullion imports by the company. Though, bullion continued to be the single largest item of import, its turnover decreased from Rs. 116540.000 Million in 2013-14 to Rs. 85920.000 Million in 2014-15.
Urea
The Company’s
turnover from import of urea increased to Rs. 29010.000 Million vis-à-vis Rs. 14950.000 Million in 2013-14 due to higher quantities of
import made by the company on behalf of GOI.
Coal/Coke
The Company continued to successfully undertake
import of coal/coke for private parties and supplied imported coal/coke worth Rs. 1110.000 Million.
Edible Oils
During the year, company imported edible oils
for small processing/ packaging units and effected sales worth over Rs. 2090.000 Million as compared to Rs. 690.000 Million
in 2013-14. This included import sale of coconut oil undertaken as a canalizing
agency of GOI.
Cashew
The Company entered into an MOU with Kerala State
Cashew Development Corporation Ltd. (KSCDC), an enterprise of Kerala Government
for import of raw cashew nuts and imported raw cashews worth Rs. 1000.000 Million on their behalf.
Equipments/Instruments
The Company also imported various equipments/
instruments worth Rs. 330.000 Million
on behalf of state governments/ departments as against Rs. 60.000 Million
in previous year.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2015 (Rs.
in Million) |
31.03.2014 (Rs.
in Million) |
|
Short-term
borrowings |
|
|
|
Other loans and advances - Unsecured |
0.700 |
0.000 |
|
Total |
0.700 |
0.000 |
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10254506 |
10/07/2015 * |
1,000,000,000.00 |
Bank of Baraoda |
International Business Branch, Bank of Baroda Bui |
C59225391 |
|
2 |
10199318 |
22/05/2013 * |
2,000,000,000.00 |
INDIAN BANK |
New Delhi Main Branch, G-41, Connaught Circus, Ne |
B79593042 |
|
3 |
10127525 |
03/07/2014 * |
4,000,000,000.00 |
STATE BANK OF PATIALA |
CHANDERLOK BUILDING, 36 JANPATH, NEW DELHI, Delhi |
C10233658 |
|
4 |
10092378 |
24/06/2015 * |
2,170,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
Centre One Building, Floor 21,, World Trade Centr |
C59034892 |
|
5 |
10042121 |
17/08/2015 * |
11,000,000,000.00 |
SYNDICATE BANK |
International Business Branch, B-39, 1st Floor, M |
C62289897 |
|
6 |
10016914 |
17/03/2011 * |
3,000,000,000.00 |
Union Bank of India |
Overseas Branch, 26/28-D, Connaught Place, New De |
B09241910 |
|
7 |
90064488 |
30/03/2010 * |
5,000,000,000.00 |
Allahabad Bank |
International Branch, 17, Parliament Street,, New |
A81935678 |
|
8 |
80058988 |
12/03/2014 * |
12,000,000,000.00 |
Indian Overseas Bank |
F-47, MALHOTRA BUILDING, JANPATH, NEW DELHI, Delh |
C00519710 |
|
9 |
80038272 |
12/03/2014 * |
6,000,000,000.00 |
Indian Overseas Bank |
F-47 , MALHOTRA BUILDING, JANPATH, NEW DELHI, Del |
C00521716 |
|
10 |
80007453 |
07/04/2008 * |
4,000,000,000.00 |
VIJAYA BANK |
BARAKHAMBA ROAD BRANCH, 17,BARAKHAMBA ROAD, NEW D |
A40679888 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED JUNE 30, 2015
(Rs. In Million)
|
|
|
Particulars |
m Months ended
30.06.2015 |
|
1 |
|
Income from
Operations |
|
|
|
|
Sales/Income from Operations (Gross) |
20473.900 |
|
|
|
b) Other Operating Income |
560.100 |
|
|
Total Income from
Operations (Net) |
21034.000 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Purchase of Stock in Trade |
20401.400 |
|
|
b) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
18.600 |
|
|
c) |
Employee benefit expenses |
259.600 |
|
|
d) |
Depreciation and amortization expense |
36.700 |
|
|
e) |
Other expenses |
79.200 |
|
|
Total Expenses |
20795.500 |
|
|
|
|
|
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items |
238.500 |
|
4 |
Other Income |
64.400 |
|
|
5 |
Profit /(Loss) from
ordinary activities before finance costs and exceptional items |
302.900 |
|
|
6 |
Finance Costs |
350.400 |
|
|
7 |
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items |
(47.500) |
|
|
8 |
Exceptional Items (Provisional/Write-off (Net of Back) – Debit / Credit) |
(39.300) |
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
(8.200) |
|
|
10 |
Tax Expense |
3.100 |
|
|
11 |
Net Profit /(Loss)
from ordinary activities after tax |
(11.300) |
|
|
12 |
Paid up equity share capital (Eq. shares of Rs.10/- each) |
60 |
|
|
13 |
Reserve excluding revaluation reserves |
|
|
|
14 |
|
Earnings per share (before/after extraordinary items) of Rs.10/- each |
|
|
|
|
Basic & Diluted |
(0.19) |
|
|
|
|
|
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of Shares |
6000000 |
|
|
|
- Percentage of Shareholding |
10.00 |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
-- |
|
|
|
- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group) |
-- |
|
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
-- |
|
|
|
b) Non- encumbered |
-- |
|
|
|
- Number of shares |
54000000 |
|
|
|
- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group) |
100 |
|
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
90.00 |
|
Particulars |
3 Months Ended 30.06.2015 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
Disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the
quarter |
Nil |
SEGMENT-WISE REVENUE,
RESULT AND CAPITAL EMPLOYED
(Rs. In Million)
|
Sr. No. |
Particular |
3 Months ended |
|
|
|
30.06.2015 |
|
|
|
(Unaudited) |
|
1. |
Segment Revenue |
|
|
|
|
3175.900 |
|
|
b. Import |
14890.700 |
|
|
|
2407.300 |
|
|
Total |
20473.900 |
|
|
Less: Inter
Segment Revenue |
-- |
|
|
Net Sales / Income
from Operations |
20473.900 |
|
2. |
Segment Result |
|
|
|
Profit/(Loss) before tax and Interest from each segment |
|
|
|
|
23.900 |
|
|
b. Import |
19.600 |
|
|
b. Domestics |
18.800 |
|
|
Total |
62.300 |
|
|
Less : i.
Interest |
350.400 |
|
|
ii. Other Un-allocable expenditure net off un-allocable income |
(279.900) |
|
|
Total Profit/(Loss)
before tax |
(8.200) |
|
3. |
Segment Capital
Employed |
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
6105.000 |
|
|
b. Import |
142.700 |
|
|
c. Domestics |
709.000 |
|
|
Total capital
employed in Segment |
6956.700 |
|
|
Add :
Un-allocable corporate assets Net of Liabilities |
3721.200 |
|
|
Total Capital employed
in the Company |
10677.900 |
Note :
The Financial Results for the quarter ended 30th June, 2015 were reviewed by the Audit Committee and taken on record by the Board of Directors in their meetings held on 13th August, 2015.
2. Limited Review as per clause 41 of the listing agreement with SEBI has been
carried out by the Statutory Auditors of the Company.
3. Trade Receivables and other operating income during the year includes Rs.
1,695.22 crore and Rs. 54.69 crore respectively, receivable from one of the
associates with whom the conciliation agreement has been signed which is
enforceable as decree. In view of the decree which was also upheld by hon’ble
Supreme Court as final, reaffirmation by the associate and payment of Rs.
586.32 crore by the associate under the conciliation agreement signed, the
receivable have been considered good and interest accrued thereon is recognized
as income.
4. As a matter of prudence, Deferred Tax Assets & MAT credit for the
quarter ended 30.06.2015 have not been recognized.
5. Figures of the previous period have been regrouped / rearranged to make them
comparable with those of the current period wherever necessary.
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
Claims against
the company /disputed liabilities not acknowledged as debt (incl. interest wherever
determined) |
30549.700 |
19279.100 |
|
Guarantees |
593.900 |
664.700 |
|
Other money for which company is
contingently liable |
262.400 |
460.700 |
FIXED ASSETS
- Office
Building
- Plant
and Equipment
- Office
Equipment
- Land
- Buildings
- Furniture
and Fittings
- Motor
Vehicles
- Office
equipment
- Railway
sidings
- Computers,
data processing units and communication Equipment
- Electrical
installations and equipment
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.64.88 |
|
|
1 |
Rs.99.88 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.