MIRA INFORM REPORT
|
Report No. : |
347508 |
|
Report Date : |
29.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SUNFLAG IRON AND STEEL COMPANY LIMITED |
|
|
|
|
Registered
Office : |
33, Mount Road, Sadar, Nagpur – 440001, Maharashtra |
|
Tel. No.: |
91-712-2524661 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
12.09.1984 |
|
|
|
|
Com. Reg. No.: |
11-034003 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1802.200 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27100MH1984PLC034003 |
|
|
|
|
IEC No.: |
0388193778 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NGPS02039C |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling
of Special Steel Rolled Products. |
|
|
|
|
No. of Employees
: |
1440 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Incorporated on 12th September, 1984, Sunflag Iron and Steel
Company Limited (SISCO). Subject is an established company having a
satisfactory track. The rating also takes into account the long track record of the
company in manufacturing of mild steel and alloy steel products, experienced
management and established position in the alloy steel industry. The rating further take consideration on company stable operations and
satisfactory financial risk profile along with decent net worth and above
average debt protection metrics. Ratings are constrained by risk associated in steel industry as well
as foreign exchange risk. Trade relations are fair. Business is active. Payment terms are
reported to slow and delayed. 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 = BBB+ |
|
Rating Explanation |
Have moderate degree of safety and carry
moderate credit risk |
|
Date |
24.10.2014 |
|
|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A2 |
|
Rating Explanation |
Have strong degree of safety and carry low
credit risk |
|
Date |
24.10.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
LOCATIONS
|
Registered/ Regional Office 1 : |
33, Mount Road, Sadar, Nagpur – 440001, Maharashtra, India |
|
Tel. No.: |
91-712-2524661/ 2520356/ 2532901/ 2520358/ 2520357 |
|
Fax No.: |
91-712-2520360 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
P.O, Bhandara Road, District Bhandara – 441905, Maharashtra, India |
|
Tel. No.: |
91-7197-285551 to 285555 |
|
Fax No.: |
91-7184-285570/ 285740 |
|
|
|
|
Warehouses : |
Located at : · Kolkata · Chennai · Delhi · Faridabad · Ludhiana · Bangalore · Kanpur · Madurai · Jaipur · Bhiwadi · Mumbai |
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|
|
|
Branch Offices : |
Located at : · Delhi · Indore · Bangalore |
|
|
|
|
Regional Office 2 : |
C/O Themco Private Limited, 8-B. T. Road, Belgharia, Kolkata – 700056,
West Bengal, India |
|
Tel No. : |
91-33-25442429/ 25442430 |
|
Fax No. : |
91-33-25442431 |
|
|
|
|
Regional Office 3 : |
Plot No. 12, Sector – 6, Mathura Road, Faridabad- 121006, Haryana,
India |
|
Tel. No.: |
91-129-4290801-08/ 4290887/ 4290888 |
|
Fax No.: |
91-129-4061646 |
|
|
|
|
Regional Office 4 : |
705, 7th Floor, Challa Mall, 11 / 11A, Sir Thiagaraya Road, T. Nagar,
Chennai - 600017, Tamilnadu, India |
|
Tel. No.: |
91-44-24341065/ 24342262/ 24342263/ 24323724 |
|
Fax No.: |
91-44-24347649 |
|
|
|
|
Regional Office 5 : |
Office No. 65-69, Fifth Floor, 'Sai Kripa Bhavan', Pune - Mumbai
Highway, Opposite KSB Pumps, S No 5743, Kharalwadi, Pimpri
District Pune – 411018, Maharashtra, India |
|
Tel. No.: |
91-20-32940427/ 27425607/ 27424685 |
|
Fax No.: |
91-20-27423013 |
|
|
|
|
Regional Office 6 : |
307, Hamilton-B, Hiranandani Business Park, Ghodbunder Road, Thane (West) - 400607, Maharashtra, India |
|
Tel. No.: |
91-22-25862294/ 95/ 96/ 25861928 |
|
Fax No.: |
91-22-25861931 |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr.
P. B. Bhardwaj |
|
Designation : |
Non-executive
Chairman |
|
DIN No.: |
00136076 |
|
|
|
|
Name : |
Mr.
Ravi Bhushan Bhardwaj |
|
Designation : |
Non-Executive
Vice-Chairman |
|
DIN No.: |
00054700 |
|
|
|
|
Name : |
Mr.
Pranav Bhardwaj |
|
Designation : |
Managing
Director |
|
Qualification : |
He has graduated as B.Sc.
Majoring in Chemistry and Business Management (Joint Honors Degree) from the
world renowned Imperial College of London. |
|
DIN No.: |
00054805 |
|
|
|
|
Name : |
Dr.
E. R. C. Shekar |
|
Designation : |
Non-executive,
Independent Director |
|
Qualification : |
He is graduated in the
Metallurgical Engineering and awarded Doctorate in that field. He was the
Managing Director of Steel Authority of India Limited (SAIL). |
|
Experience : |
He has gained nearly five
decades of experience in steel making and marketing. |
|
DIN No.: |
00013670 |
|
|
|
|
Name : |
Mr.
S. Gajendran |
|
Designation : |
Non-executive,
Independent Director |
|
Qualification : |
He is graduated from Madras
University as Electrical Engineer and started his career with Bharat Earth
Movers Limited, Bangalore in 1969. |
|
DIN No.: |
00250136 |
|
|
|
|
Name : |
CA
Jayesh M. Parmar |
|
Designation : |
Non-executive,
Independent Director |
|
DIN No.: |
00802843 |
|
|
|
|
Name : |
Mr.
Kumar Jitendra Singh |
|
Designation : |
Non-Executive,
Independent Director |
|
Qualification : |
He is B.Sc. Engineering
(Mechanical) from Bihar College of Engineering and pursued Bachelor of Law
from Ranchi University. |
|
DIN No.: |
00626836 |
|
|
|
|
Name : |
Mrs.
Neelam Kothari |
|
Designation : |
Non-Executive,
Independent Director |
|
Qualification : |
Mrs. Neelam Kothari is a
qualified Chartered Accountant and Cost Accountant, also stood rank in both the
professional examinations. |
|
DIN No.: |
06709241 |
|
|
|
|
Name : |
Mr.
Sonam Bodh |
|
Designation : |
Director
(Nominee IDBI Bank Limited) |
|
|
|
|
Name : |
Mr.
P. K. Das |
|
Designation : |
Director
(Nominee IDBI Bank Limited) |
|
|
|
|
Name : |
Mr.
Surendra Kumar Gupta |
|
Designation : |
Deputy
Managing Director) |
|
Qualification : |
Mr.
Surendra Kumar Gupta is graduated in Mechanical Engineering (B.E.) and
thereafter pursued Diploma in Business Management. |
|
Experience : |
He
has wide experience of over 37 years in Steel and Steel making industry. He
was appointed as Whole-time Director
in July, 2007 designated as Director and CEO of the Company. |
|
DIN No.: |
00054836 |
KEY EXECUTIVES
|
Name : |
CA
R. Muralidhar |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr.
Pranab Panigrahi |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2015
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
1612140 |
0.89 |
|
|
8333356 |
4.62 |
|
|
9945496 |
5.52 |
|
|
|
|
|
|
13217398 |
7.33 |
|
|
65253582 |
36.21 |
|
|
78470980 |
43.54 |
|
Total shareholding of Promoter and Promoter
Group (A) |
88416476 |
49.06 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
88000 |
0.05 |
|
|
113271 |
0.06 |
|
|
1100 |
0.00 |
|
|
50000 |
0.03 |
|
|
252371 |
0.14 |
|
|
|
|
|
|
4546351 |
2.52 |
|
|
|
|
|
|
24981366 |
13.86 |
|
|
43288877 |
24.02 |
|
|
18734007 |
10.40 |
|
|
18021945 |
10.00 |
|
|
76275 |
0.04 |
|
|
623782 |
0.35 |
|
|
1105 |
0.00 |
|
|
10900 |
0.01 |
|
|
91550601 |
50.80 |
|
Total Public shareholding (B) |
91802972 |
50.94 |
|
Total (A)+(B) |
180219448 |
100.00 |
|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
180219448 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Selling of Special Steel Rolled Products. |
|
|
|
|
Brand Names : |
-- |
|
|
|
|
Agencies Held : |
-- |
|
|
|
|
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 : |
1440 (Approximately) |
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|
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|
Bankers : |
·
State Bank of India ·
Bank of India ·
Canara Bank ·
Indian Bank ·
State Bank of Bikaner and Jaipur |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory
Auditors : |
|
|
Name : |
Patel,
Shah and Joshi Chartered Accountants |
|
Address : |
501-203, Sheel Chambers, 5th Floor, 10, Cawasji Patel
Street, Fort, Mumbai-400001, Maharashtra, India |
|
Tel. No.: |
91-22-22871591 |
|
Fax No.: |
91-22-22825865 |
|
E-Mail : |
|
|
|
|
|
Cost
Auditors |
|
|
Name : |
G.
R. Paliwal and Company Cost
Accountants |
|
Address : |
Nagpur,
Maharashtra, India |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Subsidiaries: |
·
Sunflag Power Limited · Khappa Coal Company Private Limited |
|
|
|
|
Associate
Enterprises : |
·
Haryana Televisions Limited · Ridge Farm Developers (P) Limited |
|
|
|
|
Joint
Ventures : |
·
Madanpur (North) Coal Company Private
Limited · Gujarat State Mining and Resources Corporation Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
205,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2050.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
180,219,448 |
Equity Shares |
Rs. 10/- each |
Rs. 1802.200
Million |
|
|
|
|
|
a)
Terms / Voting Rights attached to the Equity Shares
The
paid up capital of the Company consists of only equity shares of Rs. 10/- each. Every equity shareholder is entitled
to one vote per share. In the event of liquidation of the Company, the holders
of the equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will
be in proportion of the number of the Equity shares held by the Shareholders.
b)
Reconciliation of number of shares outstanding at the begining and end of the
year :
|
i)
Movement of Shares |
As at 31.03.2015 |
|
Number of Shares held |
|
|
Opening
number of shares issued |
162,197,503 |
|
Shares
issued during the year |
18,021,945 |
|
Share
bought back during the year |
-- |
|
Closing
number of shares issued |
180,219,448 |
ii)
Pursuant to resolution passed in Extra-ordinary Gerneral Meeting held on 5th August
2014, 10% Cummulative preference shares, have been reclassified into equity
shares. Accordingly the Equity Share capital now stands at 2,05.000 Million
shares of Rs. 10/- each.
iii)
During the year the company issued 18,021,945 equity shares of `10/- each fully
paid at a premium to non-promoter investor by way preferencial allotment.
c)
Details of Shareholders holding more than 5% shares in the Company
|
Name of
Shareholder |
As at 31.03.2015 |
|
|
Number of Shares held |
% of Holding |
|
|
Sunflag
Limited, Channel Islands, UK |
65253582 |
36.21% |
|
Daido
Steel Company Limited Japan |
18,021,945 |
10.00% |
|
Mr.
Suhrit Ravi Bhardwaj |
13217398 |
7.33% |
|
M/s.
Supra Corporation Limited |
8333356 |
4.62% |
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 |
1802.200 |
1622.000 |
1622.000 |
|
(b) Reserves & Surplus |
4033.100 |
3410.500 |
3193.700 |
|
(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) |
5835.300 |
5032.500 |
4815.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
1382.600 |
2234.200 |
2772.500 |
|
(b) Deferred tax liabilities (Net) |
651.500 |
486.000 |
558.000 |
|
(c)
Other long term liabilities |
28.100 |
92.200 |
130.600 |
|
(d)
long-term provisions |
138.900 |
138.900 |
138.900 |
|
Total
Non-current Liabilities (3) |
2201.100 |
2951.300 |
3600.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1977.700 |
1690.400 |
1450.200 |
|
(b)
Trade payables |
1973.000 |
2077.000 |
2406.800 |
|
(c)
Other current liabilities |
840.300 |
847.400 |
826.800 |
|
(d)
Short-term provisions |
488.700 |
438.200 |
476.200 |
|
Total
Current Liabilities (4) |
5279.700 |
5053.000 |
5160.000 |
|
|
|
|
|
|
TOTAL |
13316.100 |
13036.800 |
13575.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
5702.400 |
5839.000 |
6178.000 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
28.200 |
118.900 |
327.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
76.700 |
76.700 |
76.700 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
359.200 |
279.900 |
295.300 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
6166.500 |
6314.500 |
6877.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
3941.400 |
3306.600 |
3269.300 |
|
(c)
Trade receivables |
1885.000 |
2077.300 |
1556.200 |
|
(d)
Cash and cash equivalents |
532.600 |
506.600 |
534.000 |
|
(e)
Short-term loans and advances |
764.000 |
812.600 |
1325.500 |
|
(f)
Other current assets |
26.600 |
19.200 |
13.700 |
|
Total
Current Assets |
7149.600 |
6722.300 |
6698.700 |
|
|
|
|
|
|
TOTAL |
13316.100 |
13036.800 |
13575.700 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue From Operations |
17565.900 |
15854.200 |
15693.100 |
|
|
|
Other Income |
60.000 |
54.800 |
78.200 |
|
|
|
TOTAL |
17625.900 |
15909.000 |
15771.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10324.700 |
9324.800 |
9438.600 |
|
|
|
Other Manufacturing Expenses |
4068.800 |
3661.400 |
3468.100 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(71.700) |
(30.300) |
168.300 |
|
|
|
Employees benefits expense |
820.600 |
750.600 |
758.600 |
|
|
|
Other expenses |
730.700 |
677.600 |
674.900 |
|
|
|
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1752.800 |
1524.900 |
1262.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
714.400 |
729.900 |
823.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1038.400 |
795.000 |
439.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
511.300 |
611.800 |
564.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS
AND TAX |
527.100 |
183.200 |
(125.000) |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL ITEMS |
254.500 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL ITEMS |
245.700 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
518.300 |
183.200 |
(125.000) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
274.200 |
(33.600) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
244.100 |
216.800 |
(125.000) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of Goods |
796.700 |
802.600 |
1085.400 |
|
|
TOTAL EARNINGS |
796.700 |
802.600 |
1085.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
965.300 |
427.500 |
790.400 |
|
|
|
Spare
Parts & Components |
26.800 |
21.600 |
33.600 |
|
|
|
Capital
Goods |
0.000 |
0.000 |
13.200 |
|
|
TOTAL IMPORTS |
992.100 |
449.100 |
837.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.42 |
1.34 |
(0.77) |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current
Maturities of Long term debt |
|
|
|
|
i)
Term Loan from Banks |
755.500 |
748.100 |
728.500 |
|
ii)
Unsecured Interest free Sales Tax Loan |
55.600 |
55.300 |
61.700 |
|
Total |
811.100 |
803.400 |
790.200 |
|
|
|
|
|
|
Cash Generated from Operations |
885.300 |
1103.700 |
2389.400 |
|
|
|
|
|
|
Net cash flow from / (used in) operating
activities |
776.600 |
1065.300 |
2389.400 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2015 |
|
Type |
1rd Quarter |
|
Net Sales |
4300.600 |
|
Total Expenditure |
3800.800 |
|
PBIDT (Excl OI) |
499.800 |
|
Other Income |
11.400 |
|
Operating Profit |
511.200 |
|
Interest |
200.400 |
|
Exceptional Items |
0.000 |
|
PBDT |
310.800 |
|
Depreciation |
126.600 |
|
Profit Before Tax |
184.200 |
|
Tax |
57.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
127.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
127.200 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
1.39 |
1.37 |
(0.80) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
9.98 |
9.62 |
8.05 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.92 |
1.43 |
(0.95) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.04 |
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.71 |
0.94 |
1.04 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35 |
1.33 |
1.30 |
STOCK
PRICES
|
Face Value |
Rs. 10.00/- |
|
|
|
|
Market Value |
Rs. 19.60/- |
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 |
1622.000 |
1622.000 |
1802.200 |
|
Reserves & Surplus |
3193.700 |
3410.500 |
4033.100 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
4815.700 |
5032.500 |
5835.300 |
|
|
|
|
|
|
Long-term borrowings |
2772.500 |
2234.200 |
1382.600 |
|
Short term borrowings |
1450.200 |
1690.400 |
1977.700 |
|
CURRENT MATURITIES OF
LONG-TERM DEBTS |
790.200 |
803.400 |
811.100 |
|
Total
borrowings |
5012.900 |
4728.000 |
4171.400 |
|
Debt/Equity
ratio |
1.041 |
0.939 |
0.715 |
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 |
15693.100 |
15854.200 |
17565.900 |
|
|
|
1.027 |
10.797 |
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 |
15693.100 |
15854.200 |
17565.900 |
|
Profit |
(125.000) |
216.800 |
244.100 |
|
|
(0.80%) |
1.37% |
1.39% |
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 |
-- |
|
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 |
10559298 |
16/03/2015 |
500,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWER, WORLD TRADE COMPLEX, CUFFE PARADE,, MUMBAI- 400005, MAHARASHTRA, INDIA |
C49179989 |
|
2 |
10432530 |
28/09/2013 * |
200,000,000.00 |
STATE BANK OF BIKANER AND JAIPUR |
COMMERCIAL NETWORK
BRANCH,, 239, P. D. MELLO ROA |
B86608924 |
|
3 |
10413511 |
28/09/2013 * |
200,000,000.00 |
STATE BANK OF INDIA |
THE ARCADE, 2ND
FLOOR,, WORLD TRADE CENTRE, CUFFE |
B86567369 |
|
4 |
10225887 |
20/08/2010 * |
1,500,000,000.00 |
INDIAN BANK |
DECCAN GYMKHANA BRANCH, 759/62, PRABHAT ROAD,, PUNE- 411004, MAHARASHTRA, INDIA |
A94006160 |
|
5 |
10222470 |
20/08/2010 * |
900,000,000.00 |
BANK OF INDIA |
NAGPUR CORPORATE BANKING
BRANCH, S V PATEL MARG, |
A93477800 |
|
6 |
10209393 |
20/08/2010 * |
1,000,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWER, 9TH
FLOOR,, WTC COMPLEX, CUFFE PARADE |
A93440774 |
|
7 |
10112073 |
12/09/2008 * |
600,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH, 'THE ARCADE' 2ND FLOOR, |
A45338423 |
|
8 |
90239709 |
28/09/2013 * |
6,993,300,000.00 |
STATE BANK OF INDIA |
THE ARCADE, 2ND
FLOOR, WORLD TRADE CENTRE, CUFFE |
B87636999 |
|
9 |
90239530 |
22/07/2004 * |
43,600,000.00 |
IFCI LTD |
BANK OF BARODA
BULDING,, PARLIAMENTARY STREET,, N |
- |
|
10 |
90239504 |
22/07/2004 * |
81,100,000.00 |
INDUSTRIAL FINANCE CORP. OF INDIA |
BANK OF BARODA
BUILDING, PARLIAMENT STREET, NEW D |
- |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
From Promoters (Interest Free)@ |
137.500 |
137.500 |
|
Interest
Free Sales Tax Loan |
515.400 |
571.000 |
|
|
|
|
|
Total |
652.900 |
708.500 |
NOTE:
CORPORATE INFORMATION
Sunflag Iron and Steel
Company Limited was incorporated in 1984 and engaged in the business of manufacturing
and sale of Special Steel Rolled products.
MANAGEMENT DISCUSSION AND
ANALYSIS
Sunflag Iron and Steel
Company Limited (Sunflag Steel ) had set
up a ‘state of the art’ integrated Steel plant at Warthi, Bhandara Road to
produce high quality Special Steel with manufacturing facilities like Sponge
Iron Plant, Mini Blast Furnace, Sinter Plant, Captive Power Plant and Rolling
Mills. has established itself as a major global force. With the modern complex
pulsating with world class technology, expert human resources and a commitment
to excellence, Sunflag Steel has become
a reputed supplier in Flat Bars, Round Bars, Bright Bars and Wire Rods of Alloy
Steel, Spring Steel and Stainless Steel and captured better position in these
market segments. is also embarking on an export thrust and is regularly
supplying to various customers in South East Asian, African, Middle East and
South American countries. Further, due to implementation of Blooming Mill,
Sunflag Steel can cater to foreign as
well as indigenous customers of their needs of Rolled Products for higher
sections and thus offering a better product mix. The Blooming Mill will yield
better quality of higher size rolled products and Bloom / Ingots due to better
compression ratio and more specifically used in the critical applications like
crank shaft quality and it can be supplied to Original Equipment Manufactures (OEM).
ECONOMIC SCENARIO AND
OUTLOOK
GLOBAL ECONOMIC SCENARIO
AND OUTLOOK
ECONOMIC SCENARIO
The world economic growth remained
modest at 3.4% in year under review, amidst divergent growth trend in advanced
and emerging economies. Although, the developed economies led by the US &
UK continued to strengthen, however the growth in most emerging economies
slowed down during the year under review with majority of oil exporting
economies were under slowdown due to a sharp drop in oil prices. Despite their
slower growth, emerging markets and developing economies still accounted for
three-fourths of global growth in year.
During year, slowing demand
in some of the major developing economies led to the softening in crude and
other global commodity prices. Though the price correction created financial
stress in oil exporting countries and also resulted in disinflationary
environment in many oil importing economies, it is expected to be a net
positive to world economy in the short to medium term – especially for oil /
commodity importing economies like India.
OUTLOOK
The global steel demand
during the year under review is expected to increase by 0.5% to 1,544 Million
Tonnes, while in year 2016 - 2017 it is projected to grow by 1.4% to 1,566
Million Tonnes. Steel demand in the developed economies is projected to grow by
0.2% in year 2015 - 2016 and by 1.8% in year 2016 - 2017. Chinese steel demand
is projected to record a negative growth of 0.5% in year 2015 - 2016 as well as
in 2016 - 2017.
INDIAN ECONOMIC SCENARIO
AND OUTLOOK
ECONOMIC SCENARIO
The Indian economy,
supported by lower oil prices, improved FDI inflows and pro-growth economic
reforms initiated by new Government saw a moderate improvement in growth
momentum during Financial Year 2014 - 2015; some of the key macroeconomic
indicators also strengthened over the year.
Highlights
• The Indian economic
growth improved to 7.3% in Financial Year 2014 - 2015 as compared to 6.9% in
Financial Year 2013 - 2014. While the agriculture sector grew at 0.2%, it is
manufacturing that leads the growth at 7.1% during Financial Year 2014 - 2015.
• Several policy measures
taken by the Reserve Bank of India (RBI) and the Government, supported by lower
global crude oil prices, resulted in:
– Decline in inflation
during the year; consumer price inflation is expected to be between 5.0-5.5%
range during
2015 - 2016.
– The Current Account Deficit
(CAD) narrowed to 1.3% of GDP during Financial Year 2014 - 2015 compared to
1.7% in Financial Year 2013 - 2014.
• The Government had strong
focus on fiscal consolidation. As a result, the Gross Fiscal Deficit (GFD) declined
to 4.1% in Financial Year 2014 - 2015 and is budgeted to decline further to
3.9% in Financial Year 2015 - 2016.
OUTLOOK
The Indian economy is on a
path of gradual recovery. The government has undertaken several steps to unplug
the bottlenecks and to revive the business confidence. The Indian economy
stands to benefit from the correction in global crude oil prices, will have
positive impact on the macro economy in form of lower inflation, reduced
current account deficit, healthier fiscal accounts, increased consumption and a
stable INR. Indian economy is among a few economies globally for which economic
growth forecast has been raised by the IMF. The IMF has raised its India GDP
growth estimates for Financial Year 2015 - 2016 to 7.5%.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30.06.2015
(Rs. in Million)
|
Particulars |
Unaudited |
|
|
30.06.2014 |
|
Income from Operations |
|
|
(a) Net sates/income from operations (Net of excise duty) |
4300.600 |
|
(b) Other Operating Income |
0.000 |
|
Total income from operations (net) |
4300.600 |
|
Expenses |
|
|
(a) Cost of materials consumed |
2430.300 |
|
(b) Purchases of stock-in trade |
0.000 |
|
(c) Changes in inventories of finished goods. work-in-progress and
stock in trade |
(18.700) |
|
(d) Employee benefits expense |
267.500 |
|
(e) Depreciation and Amortization Expenses |
126.600 |
|
(f) Other Expenses |
1121.700 |
|
Total expenses |
3927.400 |
|
Profit/ (Loss) from operations before finance costs and exceptional
Items (1-2) |
373.200 |
|
Other Income |
11.400 |
|
Profit/ (Loss) from operations before finance costs and exceptional items
(3+4) |
384.600 |
|
Finance Costs |
200.400 |
|
Profit/ (Loss) from ordinary activities after finance cost but before
exceptional items |
184.200 |
|
Exceptional items |
0.000 |
|
Profit/ (Loss) from ordinary activities before tax (7-8) |
184.200 |
|
Tax expenses |
|
|
Current |
(38.600) |
|
Deferred |
(18.400) |
|
Prior Period |
0.000 |
|
Net Profit / (Loss) from ordinary activities after tax (9-10) |
127.200 |
|
Extraordinary item (net of tax expense Rs. lakhs) |
0.000 |
|
Net Profit / (Loss) for the period (11-12) |
127.200 |
|
Paid up equity share capital (Face Value of Rs 10/-each) |
18022 |
|
Reserve excluding Revaluation Reserve as per Balance Sheet of previous
accounting year |
|
|
Earnings per share (EPS) (Amount Rs.) |
|
|
(a) Basic and Diluted EPS before extra ordinary items |
0.71 |
|
(b) Basic and Diluted EPS after extra ordinary items |
0.71 |
|
|
|
|
17) PARTICULARS OF SHAREHOLDING |
|
|
A. Public Shareholding |
|
|
- Number of shares |
91802972 |
|
- Percentage of shareholding |
50.94% |
|
18) Promoters and Promoter group shareholding |
|
|
a) Pledged / Encumbered |
|
|
- Number of shares |
-- |
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
-- |
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
-- |
|
b) Non Encumbered |
|
|
- Number of shares |
88416476 |
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
100% |
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
49.06% |
NOTES:
1. After reviewed by the Audit Committee, the above financial results were approved by the Board of Directors of the Company at their meeting held on August 12, 2015.
2. The above financial results are subject to "Limited Review" by the
Statutory Auditors of the Company.
3. The Capital employed as on June 30, 2015 is Rs. 8526.500 Million.
4. As there are no taxable profits, the Company has provided current tax
expenses as per provisions under MAT.
5. During the quarter, 5 Investors complaints were received and all the complaints were attended to by the Company/ Share Transfer Agent. At the end of quarter, no complaints were pending.
6. As none of the Subsidiaries and Joint Venture Companies have commenced their
Commercial operations as on June 30, 2015, no consolidated results are
prepared.
7. The company is primarily engaged in the business of rolled products and grouped as single segment as per Accounting Standard (AS) 17 dealing with segment report issued by the ICAI.
8. The figures of previous period have been re-grouped/ re-arranged wherever necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
i)
Contingent liabilities |
|
|
|
a)
Unexpired Letter of Credit |
454.900 |
610.200 |
|
b)
Guarantees issued by Company's Bankers on behalf of the Company |
820.400 |
327.500 |
|
c) Bonds / Undertakings given
by the Company under Duty Exemption
Scheme to the Custom Authorities |
259.800 |
259.800 |
|
d)
Bills Discounted |
693.500 |
717.000 |
|
e) Excise Duty and Custom
Duty against which Company has preferred an Appeal |
6.500 |
6.500 |
|
f
) Income Tax Liability - Disputed but paid |
132.500 |
153.800 |
|
g)
Corporate Guarantee issued to Banks on behalf of Subsidiaries |
40.000 |
40.000 |
|
|
|
|
|
Total |
2407.600 |
2114.800 |
FIXED ASSETS:
Tangible Assets
·
Freehold
Land
·
Leasehold
Land
·
Buildings
·
Plant
and Equipment
·
Furniture and
Fixtures
·
Vehicles
·
Office Equipment
·
Computer Equipments
·
Welfare
Buildings
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 65.04 |
|
UK Pound |
1 |
Rs. 99.58 |
|
Euro |
1 |
Rs. 71.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
IND |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--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 |
|
48 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.