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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

504053

Report Date :

18.04.2018

 

 

 

 

IDENTIFICATION DETAILS

 

Name :

HARIYANA SHIP-BREAKERS LIMITED

 

 

Registered Office :

156, Maker Chambers VI, 220 Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400021, Maharashtra

Tel. No.:

91-22-22043211

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

09.07.1981

 

 

Com. Reg. No.:

11-024774

 

 

Capital Investment / Paid-up Capital :

INR 61.667 Million

 

 

CIN No.:

[Company Identification No.]

L61100MH1981PLC024774

 

 

IEC No.:

[Import-Export Code No.]

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACH2476E

 

 

GSTN :

[Goods & Service Tax Registration No.]

27AAACH2476E1ZR

 

 

Legal Form :

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

 

 

Line of Business :

The Company was engaged in Ship Recycling (ship breaking), Manufacturing of Sponge Iron and Steels, Trading in Ferrous and Non-Ferrous Metals and Coal and Investment (Registered Activity)

 

 

No. of Employees :

249 (Approximately) 

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory 

 

 

Payment Behaviour :

Slow but correct 

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated in the year 1981. The company is a part of Hariyana Group.

 

The company is engaged in ship recycling (ship breaking), manufacturing of sponge iron & steels, trading in ferrous & non-ferrous metals and coal and investment.

 

As per the quarterly results of December 2017, the company has achieved sales turnover of INR 399.889 million along with average profitability margin.

 

For the financial of 2017, the company has reported a decline in its revenue as compared to the previous year’s revenue but has managed to maintain average net profit margin of 3.43%.

 

The company possesses healthy financial position marked by sound net worth base along with strong debt coverage indicator due to low debt balance sheet profile.

 

The company has its share price trading at around INR 97 on BSE as on April 16, 2018 as against the Face Value (FV) of INR 10.

 

Rating is constrained on account of deterioration in Hariyana group's business profile marked by weakened operating profitability.

 

Rating is further constrained on account of working capital intensive nature of operations and inherent cyclicality in the steel industry.

 

Business is active. Payment seems to be slow but correct.

 

In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition.

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Loans = B+

Rating Explanation

Risk-prone-credit-quality and carries very high credit risk

Date

30.05.2017

 

 

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 31-03-2018.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 18.04.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Satish

Designation :

Accounts Manager

Contact No.:

91-22-22043211

Date :

16.04.2018

 

 

LOCATIONS

 

Registered Office / Corporate Office :

156, Maker Chambers VI, 220 Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Tel. No.:

91-22-22043211

Fax No.:

91-22-22043215

E-Mail :

hsbl@vsnl.com

contact@hariyanagroup.com

Website :

http://www.hariyanagroup.com

Location :

Owned

Locality :

Commercial

 

 

Ship Breaking Yard :

Plot No. 14, Ship Breaking Yard, Alang, District : Bhavnagar, Gujarat, India

 

 

Sponge Iron Plant :

Survey No. 12, 14, 15, Shanthigrama (Hubli), Kanchanhally Village, Hassan – 573201, Karnataka, India

 

 

Branch Office 1 :

Hariyana House, 2165/A-2, 2nd Floor, Sanskar Mandal Chowk, Bhavnagar – 364002, Gujarat, India

Tel. No.:

91-278-3005755 / 3005955 / 2568555

Fax No.:

91-278-2567222

E-Mail :

info@hariyanagroup.com

 

 

Branch Office 2 :

206 Barton Centre, M.G. Road, Bangalore - 560001, Karnataka, India

Tel. No.:

91-80-25325716 / 25325717 / 25325710 / 25325711 / 25325712

Fax No.:

91-80-25091411

E-Mail :

info.bng@goyalco.com

sanjeevreniwal@yahoo.co.in

sanjeev@goyalco.com

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Rakesh Reniwal

Designation :

Director

Address :

191 Persepolis Apartment,19th Floor, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Date of Appointment :

01.02.1993

DIN No.:

00029332

 

 

Name :

Mr. Shanti Sarup Reniwal

Designation :

Managing Director

Address :

191, Persepolis Apartment, 19th Floor, Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India

Date of Appointment :

09.07.1981

DIN No.:

00040355

 

 

Name :

Mrs. Unnati Rakesh Reniwal

Designation :

Director

Address :

191 Persepolis Apartment,19th Floor, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Date of Birth/ Age :

06.04.1979

Qualification :

B. A.

Date of Appointment :

02.06.2014

DIN No.:

00041306

 

 

Name :

Mr. Manohar Hanumants Wagh

Designation :

Director

Address :

302 Sylverton Building, 102 Wode House Road, Colaba, Mumbai - 400005, Maharashtra, India

Date of Appointment :

28.04.2009

DIN No.:

02622648

 

 

Name :

Mr. Pradeep Lilaram Bhatia

Designation :

Director

Address :

401 Samarth Flats, Plot 21, 94-D Hilldrive, Bhavnagar - 364001, Gujarat, India

Date of Appointment :

25.12.2009

DIN No.:

02903984

 

 

Name :

Mr. Tejasbhai Himmatbhai Thakker

Designation :

Director

Address :

1193-D-4, Devarya Epartamenta, Ambavadi, Bhavnagar - 364001, Gujarat, India

Date of Appointment :

12.04.2010

DIN No.:

03017277

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajeev Shantisarup Reniwal

Designation :

Chief Financial Officer

Address :

191 Persepolis Apartment,19th Floor, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Date of Appointment :

30.03.2015

PAN No.:

ADMPR3334D

 

 

Name :

Swati Chauhan

Designation :

Company Secretary

Address :

503, Shreekrishnavilla, Chinchpada Road Katemanevali, Behind Water Khadan, Kalyan East – 421306, Maharashtra, India

Date of Appointment :

01.02.2016

PAN No.:

AVYPC0154A

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on December, 2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

Promoter and Promoter Group

4529814

73.46

Public

1636853

26.54

Grand Total

6166667

100.00

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

0.00

Individuals/Hindu undivided Family

4529814

73.46

SHANTISARUP R. RENIWAL

80080

1.30

SHALINI S. RENIWAL

123100

2.00

SWEETY R. RENIWAL

51150

0.83

LALITADEVI S RENIWAL

414800

6.73

RAKESH SHANTISARUP RENIWAL

858230

13.92

RAJEEV SHANTISARUP RENIWAL

1539009

24.96

SHANTISARUP RENIWAL & SONS. HUF

625178

10.14

UNNATI R. RENIWAL

400000

6.49

SANJEEV S. RENIWAL

438267

7.11

Sub Total A1

4529814

73.46

A2) Foreign

0.00

A=A1+A2

4529814

73.46

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

B1) Institutions

0

0.00

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

816576

13.24

Individual share capital in excess of INR 0.200 Million

474002

7.69

SUBRAMANIAN P

112800

1.83

JAGDISH CHANDER BANSAL HUF .

117378

1.90

NBFCs registered with RBI

100

0.00

Any Other (specify)

346175

5.61

BLACKSTONE PROPERTIES PVT. LTD.

86333

1.40

WEED INVESTMENT & FINANCE PVT. LTD.

148854

2.41

Sub Total B3

1636853

26.54

B=B1+B2+B3

1636853

26.54

 

 

BUSINESS DETAILS

 

Line of Business :

The Company was engaged in Ship Recycling (ship breaking), Manufacturing of Sponge Iron and Steels, Trading in Ferrous and Non-Ferrous Metals and Coal and Investment (Registered Activity)

 

 

Products :

NIC Code No.

Product Description

4662 and 4669

Trading in ferrous and non ferrous metals, coils and Coals

3830

Dismentling / Breaking of old and used ships

2410

Manufacturing of Sponge Iron

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Available

 

 

Imports :

 

Countries :
  • Japan
  • China

 

 

Terms :

 

Selling :

Cheque and RTGS

 

 

Purchasing :

Cheque

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

249 (Approximately) 

 

 

Bankers :

Bank Name

Punjab National Bank

Branch

Foreshore Road, Mumbai – 400021, Maharashtra, India

Person Name (With Designation)

--

Contact Number

91-22-22822655 (Ringing)

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Short-term borrowings

 

 

Loans Repayable on Demand

 

 

Working Capital Loans from Banks

15.487

3.013

 

 

 

Total

15.487

3.013

 

NOTE :

Particulars

As at

 

March 31, 2017

March 31, 2016

Working Capital Loan from banks:

 

 

a - Punjab National Bank OD 376097

15.487

0.000

b - Punjab National Bank CC- 600

0.000

3.013

 

Details of Security:

 

a. Cash Credit facility from Punjab National Bank is secured by way of hypothecation of Stock of Raw-Material, Finished goods, Work in progress, Books debts and personal guarantee of the Directors.

b. Bank overdraft facility from Punjab National Bank OD-376097 is secured by way of equitable mortgage of immovable property of the company and associated concern as collateral security and personal guarantee of the associated concern and relatives of the key management personnels.

c. Cash Credit facility from Punjab National Bank CC - 1040 is secured by way of hypothecation of Stocks and book debts of the company as primary security and equitable mortgage of immovable property of the company and associated concern as collateral security.

 

Statutory Auditor :

 

Name :

P. D. Goplani and Associates

Chartered Accountants

Address :

A/104 – 105, Leela Efcee, Near Aksharwadi, waghawadi Raod, Bhavnagar – 364002, Gujarat, India 

Tel. No.:

91-278-2570105 / 106

E-Mail :

pdgoplani@gmail.com

prem.goplani@rediffmail.com

 

 

Secretarial Auditor :

 

Name :

Dilip Bharadiya and Associates

Chartered Accountants

 

 

Internal Auditor :

 

Name :

Amol Shah

Chartered Accountant

 

 

Branch Auditor :

 

Name :

Lahoti Navneet and Company

Chartered Accountants

 

 

Name :

Gowthama and Company

Chartered Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises commonly controlled or influnced by major shareholder/ directors/ relative of directors of the Company:
  • Orchid Lakeview Developers
  • Swastik Developers
  • White Mountain
  • Whitefield Project
  • Hariyana Ship Demolition Private Limited
  • Goyal Hariyana Realty
  • Inducto Steels Limited
  • Goyal Hariyana Construction
  • Hariyana Air Products
  • Hariyana Developers

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6500000

Equity Shares

INR 10/- each

INR 65.000 Million

5000000

4% Redeemable Preference Share

INR 10/- each

INR 50.000 Million

 

 

 

INR 115.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6166667

Equity Shares

INR 10/- each

INR 61.667 Million

 

 

 

 

 

 

The reconciliation of the number of outstanding shares as at 31st March, 2017 is set out below:

 

Equity Shares

Number of Shares

INR In Million

At the beginning of the year

6166667

61.667

Add: Issue of Bonus Shares during the year 

-

-

Less: Shares bought back during the year

-

-

Shares outstanding at the end of the year

6166667

61.667

 

 

The details of shareholder holding more than 5% shares as at 31st March, 2017 is set out below:

 

Name of Shareholder

March 31, 2017

Number of Shares

% of Holding

Rakesh Reniwal

858230

13.92%

Lalitadevi Reniwal

414800

6.72%

Sanjeev Reniwal

438267

7.11%

Shantisarup Reniwal HUF

625178

10.14%

Rajeev Reniwal

1539009

24.96%

Unnati Reniwal

400000

6.49%

 

As per records of the company, including its register of shareholders/members and other declarations received from share holders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

 

Terms/rights attached to equity shares

 

The company has only one class of equity shares having a par value of Rs.10/-. Each holder of equity share 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 approval of shareholders in the ensuing Annual General Meeting.

 

During the period ended 31st March 2017, the amount of per share dividend recognized as distributions to equity shareholder was NIL per share (PY Nil)

 

Preference shareholder do not have any voting right. They are entitled to dividend @ 4% before equity shareholders.

 

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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

 

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

61.667

61.667

61.667

(b) Reserves & Surplus

1087.493

993.589

919.981

(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)

1149.160

1055.256

981.648

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

69.762

64.535

59.687

(b) Deferred tax liabilities (Net)

5.735

22.661

18.393

(c) Other long term liabilities

1.690

1.340

1.760

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

77.187

88.536

79.840

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

15.487

3.013

0.000

(b) Trade payables

904.889

1359.769

1138.895

(c) Other current liabilities

45.033

16.666

21.074

(d) Short-term provisions

1.847

0.042

0.901

Total Current Liabilities (4)

967.256

1379.490

1160.870

 

 

 

 

TOTAL

2193.603

2523.282

2222.358

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

85.290

151.449

173.435

(ii) Intangible Assets

0.000

0.022

0.043

(iii) Capital work-in-progress

1.136

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

694.748

769.877

308.911

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

8.032

7.206

2.533

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

789.206

928.554

484.922

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

186.270

36.293

109.483

(c) Trade receivables

225.250

347.109

384.843

(d) Cash and cash equivalents

4.397

10.860

49.377

(e) Short-term loans and advances

988.213

1200.197

1193.462

(f) Other current assets

0.267

0.269

0.271

Total Current Assets

1404.397

1594.728

1737.436

 

 

 

 

TOTAL

2193.603

2523.282

2222.358

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

2754.480

3656.974

2363.388

 

Other Income

333.327

245.193

333.884

 

TOTAL

3087.807

3902.167

2697.272

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

931.182

90.170

1389.218

 

Purchases of Stock-in-Trade

1935.535

3426.456

922.060

 

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

(66.251)

(25.284)

(5.416)

 

Employees benefits expense

12.606

3.240

13.991

 

Extra Ordinary items

36.180

0.000

0.000

 

Other expenses

51.903

236.265

170.862

 

TOTAL

2901.155

3730.847

2490.715

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

186.652

171.320

206.557

 

 

 

 

 

Less

FINANCIAL EXPENSES

78.669

71.858

38.151

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

107.983

99.462

168.406

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

19.567

20.918

24.900

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

88.416

78.544

143.506

 

 

 

 

 

Less

TAX

(6.156)

4.268

2.073

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

94.572

74.276

141.433

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

15.34

12.04

22.94

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

(483.362)

497.434

1139.251

Net cash flow from operating activity

(494.133)

497.434

1120.501

 

 

QUARTERLY RESULTS

 

(INR in Million)

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

597.300

185.020

399.89

Total Expenditure

582.250

188.990

402.230

PBIDT (Excl OI)

15.050

(3.970)

(2.340)

Other Income

30.260

22.520

42.440

Operating Profit

45.310

18.550

40.100

Interest

8.040

13.070

0.650

Exceptional Items

NA

NA

NA

PBDT

37.270

5.480

39.450

Depreciation

1.090

1.130

1.170

Profit Before Tax

36.180

4.350

38.280

Tax

11.950

1.750

13.630

Provisions and contingencies

NA

NA

NA

Profit After Tax

24.230

2.600

24.640

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

24.230

2.600

24.640

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

29.85

34.64

59.43

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

12.23

10.54

6.14

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

115.21

141.13

179.86

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.00

4.72

1.89

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

2.16

1.13

1.19

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.47

0.57

0.55

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.07

0.06

0.06

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.84

1.31

1.18

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.08

0.14

0.18

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

2.37

2.38

5.41

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

3.43

2.03

5.98

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

4.31

2.94

6.36

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

8.23

7.04

14.41

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.45

1.16

1.50

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.26

1.13

1.40

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.52

0.42

0.44

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

1.38

1.10

0.97

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.45

1.16

1.50

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

 

 

STOCK PRICES

 

Face Value

INR 10.00/- each

Market Value

INR 97.00/- each

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

61.667

61.667

61.667

Reserves & Surplus

919.981

993.589

1087.493

Net worth

981.648

1055.256

1149.160

 

 

 

 

Long Term borrowings

59.687

64.535

69.762

Short Term borrowings

0.000

3.013

15.487

Total borrowings

59.687

67.548

85.249

Debt/Equity ratio

0.061

0.064

0.074

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2363.388

3656.974

2754.480

 

 

54.734

(24.679)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2363.388

3656.974

2754.480

Profit

141.433

74.276

94.572

 

5.98%

2.03%

3.43%

 

 

 

 

 

 

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

Yes

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)

Yes

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

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

CORPORATE INFORMATION:

 

Hariyana Ship Breakers Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company has its primary listing on BSE Limited. During the year, the Company was engaged in Ship Recycling (ship breaking), Manufacturing of Sponge Iron and Steels, Trading ‘in Ferrous and Non-Ferrous Metals and Coal and Investment. As and when any surplus fund are available, the same is given on interest to other parties and also invested in the shares and securities to earn short term and long term capital gains.

 

HIGHLIGHTS OF THE COMPANY’S PERFORMANCE:

 

During the year under consideration, total revenue amounted to INR. 3087.807 Million as against INR. 3902.167 Million in the preceding financial year and Profit after tax stood at INR. 94.572 Million as against INR. 74.276 Million in the preceding financial year.

 

The Company has been able to increase its profit margin during the year by 27.33%. However, the Company has failed to increase its revenue from operations during the year due to various factors like fluctuations in the exchange rate of US Dollar vis-à-vis Indian Rupee and steep decrease in prices of iron and steel products and volatile market conditions. Moreover, the decrease in revenue is mainly due to per unit (MTs) prices remaining low during the year as compared to the preceding year. However, despite of such adverse factors, the Company had sustained sales performance and achieved positive profits during the year. The Management is of the view that in the coming years the ship breaking industry as well as iron and steel sector will be stable and with expected boost in the economy the requirement of iron and steel will increase which will help the Company to move towards its sustained path of growth.

 

OVERVIEW

 

The Company is now a diversified Company with ship breaking, trading activities and investment activities. The Company has also diversified into manufacture of industrial gases, real estate and construction by going into partnerships with experienced entrepreneurs in the field. During the financial year 2016-17, though total revenue of the Company has been decreased, the Company was able to increase its Net Profit. During the year

 

SEGMENTAL REVIEW

 

During the financial year 2016-17, the Company ship-breaking unit at Alang Ship Breaking Yard and Trading Unit, Mumbai has shown an increase in sales turnover, however, the ship breaking unit is expected to grow substantially in coming years. Due to fluctuating and volatile prices of old ships, iron and steel products coupled with fluctuation in value of Indian Rupee vis-à-vis US Dollar during the year, the net profit margins of this segment has been affected. The Trading Unit, Bhavnagar and Mumbai have performed well in terms of profit during the year under consideration. However, the Management is of the view that, in the coming years the ship breaking industry will be stable and with expected boost in the economy the requirement of iron and steel will increase which will help the Company to move towards its sustained path of growth.

 

Ship Breaking Unit (Bhavnagar):

 

During the financial year 2016-17, ship breaking unit at Alang Ship Breaking Yard has performed very well. During the year , the sales turnover of Ship Breaking Unit has been increased by almost 7 times. However, due to various factors like fluctuations in the exchange rate of US Dollar vis-à-vis Indian Rupee and steep decrease in prices of Iron and steel products and volatile market conditions the unit was unable to increase its profit margin. The Management is of the view that, in the coming years the ship breaking industry will be stable and with expected boost in the economy the requirement of iron and steel will increase which will help the Company to move towards its sustained path of growth.

 

Trading Unit (Bhavnagar):

 

During the financial year 2016-17, the trading unit (Bhavnagar) has not been able to perform well in terms of sales turnover due to adverse market conditions like decrease in prices of Iron and steel products and fluctuations in the exchange rate of US Dollar vis-à-vis Indian Rupee. However, in such an uncertain market environment in Iron and Steel industry, the management took cautious approach to the prevalent affairs and avoided any venturous business decision in the interest of the Company which resulted in increased profit margin of the unit. Moreover, the management hopes that the trading unit will show an increase in terms of sales as well as profits in the coming years.

 

Trading and Investment Unit, Mumbai (HO):

 

During the year, the Mumbai Trading Unit has outperformed in terms of sales turnover and profit margins. The sales turnover for the FY: 2016-17 of Trading Unit (Mumbai) was INR 1636.100 Million and profit was INR 194.600 Million. The Management is hopeful that in the coming financial years the Trading Unit, Mumbai will achieve new heights in terms of sales turnover and profits.

 

Steel and Power Unit (Bangalore):

 

Steel and Power unit has been shut down during the preceding financial year due to issues of uninterrupted availability of raw materials, local mining issues, rupee volatility and other similar factors at Hassan, Karnataka.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Loans and Advances

 

 

From Related Parties

69.762

64.535

 

 

 

Total

69.762

64.535

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED 31ST DECEMBER, 2017

 

(INR in Million)

 

 

Particulars

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

399.889

185.015

1182.205

 

 

b) Other Operating Income

42.441

22.521

95.218

 

Total Income from Operations (Net)

442.330

207.536

1277.423

2

Expenses              

 

 

 

 

a)

Cost of Materials consumed

239.281

174.226

492.565

 

b)

Purchase of Stock-in-trade

361.958

129.336

875.699

 

c)

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(209.435)

(129.336)

(241.627)

 

d)

Employee benefit expenses

6.677

4.646

14.719

 

e)

Finance Costs

0.649

13.066

10.252

 

f)

Depreciation and amortization expense

1.173

1.130

3.397

 

g)

Other expenses

3.751

10.122

21.857

 

Total Expenses

404.053

203.190

1198.619

 

 

 

 

 

3

Profit before Tax

38.277

4.346

78.804

4

Tax Expense

13.632

1.751

27.330

5

Net Profit for the period after tax

24.644

2.595

51.474

 

 

 

 

 

 

Total Comprehensive Income

24.644

2.595

61.667

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

4.00

0.42

8.35

 

NOTE :

 

1. The financial results of the quarter ended December 31, 2017 were reviewed by the Audit Committee, and were approved by the Board of Directors as its meeting held on 12th February, 2018.

 

2. The Company has adopted Ind AS with effect from 1st April, 2017. Therefore, Ind AS transition date is w.e.f. 1st April 2016 and for that purpose comparative figures for the corresponding quarters and Nine months ended are restated. Accordingly, the impact of transition has been provided and figures for that period has been restated accordingly. The Ind-AS compliant financial results, pertaining to the relevant periods of the previous year have not been subjected to limited review or audit. However, the management has exercised necessary due diligence to ensure that the financial results provide a true and fair view of its affairs.

 

3. The financial results of the company have been prepared in accordance with Indian Accounting Standards prescribed under section 133 of the companies Act, 2013 read with relevant rules thereunder and in terms with regulation 33 of SEBI (LODR) regulations 2015 and SEBI circular dated 5th July 2016. The company had prepared the reconciliation of net profit for the quarter ended December 2016 and Nine Months ended December 2016.

 

4. Revenue from operations for periods upto 30th June, 2017 included excise duty, which is discontinued from 1st July, 2017 on implementation of Goods and Service Tax (GST) in India. In accordance with Ind AS 18, GST is not included in Revenue from Operations. In view of the aforesaid restructuring of indirect taxes, revenue from operations for the quarter/ nine months ended on 31st December, 2017 is not comparable with previous periods.

 

5. Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about geographic areas. The company's operations predominantly relate to enhance business performance. Based on the "Management Approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company's performance and allocates resources based on an analysis of various performance indicators by geographic segments. Accordingly, information has been presented on geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments.

 

Business segments of the company are primarily categorized as: Trading and Investment (Mumbai) and Ship Breaking and Trading (Bhavnagar).

 

6. Figures of previous reporting periods have been regrouped/reclassified wherever necessary to correspond with the figures of the current reporting period.

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

G46091617

100103531

Panjab National Bank

23/05/2017

-

-

400000000.0

Forshore road, Raheja Chamber , Nariman Point ,mumbai -400021mumbaiMH400021IN

2

B79049516

10354982

PUNJAB NATIONAL BANK

03/05/2012

14/05/2013

-

8000000000.0

FORSHORE ROAD BRANCH, RAHEJA CHAMBERS,NARIMAN POINT,MUMBAIMH400021IN

3

B79050035

90152701

PUNJAB NATIONAL BANK

14/02/1985

14/05/2013

-

4000000000.0

FORSHORE ROAD BRANCH, RAHEJA CHAMBERS,NARIMAN POINT,MUMBAIMH400021IN

4

G76886266

90152680

VIJAYA BANK

12/08/1982

-

01/02/2018

4050000.0

CUFFE PARADECOLABABOMBAYMHIN

5

G35602085

90153080

PUNJAB NATIONAL BANK

22/12/1994

20/11/1995

19/01/2017

75000000.0

GEN J.B. MARGBOMBAYMH400021IN

6

G35601749

90152915

PUNJAB NATIONAL BANK

21/04/1993

-

19/01/2017

15000000.0

GEN. J. BHOSALE MARG (FORESHORE ROAD)BOMBAYMH400021IN

7

G35609502

90153282

PUNJAB NATIONAL BANK

24/05/1996

25/09/2009

19/01/2017

3359100000.0

FORESHORE ROAD BRANCH, RAHEJA CHAMBERS,NARIMAN POINT,MUMBAIMH400021IN

8

G35598788

10266231

PUNJAB NATIONAL BANK

20/01/2011

-

19/01/2017

1600000000.0

FORESHORE ROAD BRANCH, RAHEJA CHAMBERS,NARIMAN POINT,MUMBAIMH400021IN

9

G35601376

10307712

PUNJAB NATIONAL BANK

09/09/2011

-

19/01/2017

800000000.0

FORSHORE ROAD BRANCH, RAHEJA CHAMBERSNARIMAN POINTMUMBAIMH400021IN

10

G35600337

10305211

PUNJAB NATIONAL BANK

23/07/2011

-

19/01/2017

950000000.0

FORSHORE ROAD BRANCH, RAHEJA CHAMBERSNARIMAN POINTMUMBAIMH400021IN

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Pending appeal before Hon. ITAT, Mumbai

0.397

0.397

Pending appeal before Hon. ACIT Circle 3(1)(2), Mumbai

0.188

0.188

Pending appeal before Hon. CIT, Central circle 54, Mumbai

0.201

0.201

Pending appeal before Hon. DCIT Circle 3(1)(2), Mumbai

0.358

0.358

Pending appeal before Hon. DCIT Circle 3(1)(2), Mumbai

3.031

3.031

Pending appeal before Hon. CIT (A)-8, Mumbai

6.030

6.030

Pending appeal before Hon. CIT (A)-8, Mumbai

9.853

0.000

 

 

FIXED ASSETS

 

  • Factory Land
  • Warehouse
  • Godown
  • Flat - Madhav Hill
  • Factory Building
  • Roads and Culvets
  • Plant and Machinery
  • Crane
  • Pollution Control Equipments
  • Plant and Machinery (Others)
  • Asbesto Handling System
  • Office Equipments
  • Oxygen Tank
  • Mobile
  • Furniture
  • Computers
  • Airconditioners
  • Metal Detector
  • Vehicles
  • Transport Vehicles
  • Portable Generator Set
  • Wire Ropes
  • Fire Fighting Equipments
  • Building
  • Spectro Meter
  • Weighing Machine
  • Weigh Bridge
  • Winch

 

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 records 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

INR

US Dollar

1

INR 65.45

UK Pound

1

INR 93.28

Euro

1

INR 80.74

 

 

INFORMATION DETAILS

 

Information Gathered by :

PON

 

 

Analysis Done by :

NYT

 

 

Report Prepared by :

KJL

 

 

SCORE FACTORS

 

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

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

 

 

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.