|
|
|
MIRA INFORM REPORT
|
Report No. : |
489201 |
|
Report Date : |
02.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
ELECTROSTEEL STEELS LIMITED (w.e.f. 05.05.2010) |
|
|
|
|
Formerly Known
As : |
ELECTROSTEEL INTEGRATED LIMITED |
|
|
|
|
Registered
Office : |
801, Uma Shanti Apartments, Kanke Road, Ranchi – 834008,
Jharkhand |
|
Tel. No.: |
91-651-2285636 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
20.12.2006 |
|
|
|
|
Com. Reg. No.: |
03-012663 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 24092.350 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27310JH2006PLC012663 |
|
|
|
|
IEC No.: |
Not Divulged |
|
|
|
|
TAN No.: [Tax Deduction and Collection
Account No.] |
Not Available |
|
|
|
|
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
: |
Subject is engaged in Selling of Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes. [Registered activity] |
|
|
|
|
No. of Employees
: |
2153 (Approximately) |
|
MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
Status : |
Poor |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was incorporated in the year 2006. It is engaged in selling of TMT bars, billets, ductile iron pipes, pig iron and wire rod. As per the financial record of 2017, the company revenue of the company has decreased by 3.96% and has incurred its operational loss. The moderate financial risk profile of the company is reflected by negative networth base due to huge accumulated losses along with poor debt coverage indicators due to high debt balance sheet profile. The rating is constrained on account of delays in debt servicing by the company due to its weak liquidity and competition of integrated steel and subdued steel industry scenario. The shares of the company are traded at the share price of INR 4.49 on stock exchange as against the face value of INR 10 as on 30th January, 2018. The National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process against the Electrosteel Steels Limited on 21st July, 2017. Payments seems to be slow and delayed. In view of the aforesaid, the company can be considered for business dealings on safe and secured 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
|
Country Name |
Previous Rating (31.03.2017) |
Current Rating (30.06.2017) |
|
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 D |
|
Rating Explanation |
Lowest credit quality and very low prospects
of recovery. |
|
Date |
19.08.2016 |
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 has been found enlisted as a
defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’
list as of 31.03.2016.
|
Name : |
ELECTROSTEEL STEELS LIMITED |
DID NOT MAKE DISCLOSURE IN RHP REGARDING REJECTION OF PROPOSAL OF FOREST DIVERSION OF ITS IRON ORE MINE BY MINISTRY OF ENVIRONMENT AND FOREST VIOLATING REGULATION 2009 IN MATTER OF IPO OF ELECTROSTEEL CASTING LIMITED |
|
|
Old Name |
ELECTROSTEEL INTEGRATED LIMITED |
||
|
PAN NO |
AABCE6875H |
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 02.02.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is listed in the publicly available
IBBI (Insolvency and Bankruptcy Board of India) list as of report date. The
details of the listing are as under :
|
Date of Listing / Announcement : |
21.07.2017 |
|
Name of Company : |
Electrosteel Steels Limited |
|
Name of Applicant : |
Dhaivat Anjaria |
|
Name of Insolvency Professional : |
PricewaterhouseCoopers (PWC) |
|
Address of Insolvency Professional : |
252, Veer Savarkar marg, Shivaji park,
Dadar, Mumbai - 400028 |
|
Reason for Listing : |
Corporate Insolvency Resolution Process |
INFORMATION DECLINED
Management non-cooperative (Tel No.: 91-651-2285636/ 91-33-71034400)
LOCATIONS
|
Registered Office : |
801, Uma Shanti Apartments, Kanke Road, Ranchi – 834008,
Jharkhand, India |
|
Tel. No.: |
91-651-2285636 |
|
Fax No.: |
91-651-2285636 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
Locality : |
Industrial |
|
|
|
|
Head Office/ Corporate Office/ Marketing Office : |
G K Tower, 2nd and 3rd Floor, 19, Camac
Street, Kolkata – 700017, West Bengal, India |
|
Tel. No.: |
91-33-71034400 |
|
Fax No.: |
91-33-22902882 |
|
|
|
|
Factory/ Project
Site : |
Village Siyaljori, P.O. Jogidih, P S Chandankyari, Bokaro
– 828303, Jharkhand, India |
|
|
|
|
Branch Offices : |
Ø Office No.-2B, Puja Apartment, Wing-A, 2nd Floor, New Dak Bunglow Road, Patna – 800001, Bihar, India Ø Lohanchal Colony, Plot No.10, Near Sector 12-F, Bokaro Steel City, Jharkhand, India Ø Flat F-3, House No.11, House of JN Sarm, Udaychal Path, Christian Basti, Behind Christian Basti Petrol Pump, Guwahati – 781005, Assam, India Ø C-101, Palaspally, 1st Floor, Bhubaneswar – 751020, Orissa, India Ø 19 Camac Street, Kolkata, West Bengal, India Ø B-47, Shiv Mahal, Connaught Place, New Delhi – 110001, India Ø 312, 314, 3rd Floor, DLF Tower – B, Jasola, New Delhi – 110025, India |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Mr. Rajkumar Khanna |
|
Designation : |
Non-Executive Independent Director |
|
Address : |
Flat No. 229, Malwa Singh Block, Asian Games Village, New Delhi – 110049, India |
|
Date of Appointment : |
05.05.2014 |
|
DIN No.: |
05180042 |
|
|
|
|
Name : |
Mr. Jinendra Kumar Jain |
|
Designation : |
Non-Executive Independent Director |
|
Address : |
60, Southern Avenue, 5th Floor, Kolkata – 700029, West Bengal, India |
|
Date of Appointment : |
06.05.2013 |
|
DIN No.: |
00737352 |
|
|
|
|
Name : |
Mr. Lalit Kumar Singhi |
|
Designation : |
Non-Executive Director |
|
Address : |
27/8A, Water Loo Street, Kolkata – 700069, West Bengal, India |
|
Date of Birth/Age : |
18.11.1959 |
|
Date of Appointment : |
06.02.2012 |
|
DIN No.: |
00893144 |
|
|
|
|
Name : |
Mr. Naresh Pachisia |
|
Designation : |
Non-Executive Independent Director |
|
Address : |
Flat 9B, 29A, Ballygunge Park Road, Kolkata – 700019, West Bengal, India |
|
Date of Appointment : |
20.05.2009 |
|
DIN No.: |
00233768 |
|
|
|
|
Name : |
Mr. Sunil Vasant Diwakar |
|
Designation : |
Non-Executive Director |
|
Address : |
C-002, Shreejiville, Opposite Nitin Company, Almeda Road, Panchpakhadi, Thane West – 400602, Maharashtra, India |
|
Date of Birth/Age : |
22.05.1963 |
|
Date of Appointment : |
31.08.2009 |
|
DIN No.: |
00089266 |
|
|
|
|
Name : |
Mr. Umang Kejriwal |
|
Designation : |
Non-Executive Director |
|
Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata – 700019, West Bengal, India |
|
Date of Appointment : |
20.12.2006 |
|
DIN No.: |
00065173 |
|
|
|
|
Name : |
Mr. Rama Shankar Singh |
|
Designation : |
Whole Time Director |
|
Address : |
Ashoka Building, Flat :1D, Ashoka Road,Alipore, Kolkata – 700027, West Bengal, India |
|
Date of Appointment : |
06.02.2014 |
|
DIN No.: |
02093276 |
|
|
|
|
Name : |
Mr. Devaprasad Mozumder |
|
Designation : |
Nominee Director |
|
Address : |
A3-1205, Kumar Kruti, Wadgaon Sheri, Pune – 411014, Maharashtra, India |
|
Date of Appointment : |
08.12.2016 |
|
DIN No.: |
07666887 |
|
|
|
|
Name : |
Ms. Jayantika Ganguly |
|
Designation : |
Additional Director |
|
Address : |
8-A-10, Mig, Green Wood, Park Extension, New Town, Rajarhat, North 24 Parganas, Kolkata – 700156, West Bengal, India |
|
Date of Appointment : |
08.12.2016 |
|
DIN No.: |
07667499 |
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh Agarwal |
|
Designation : |
Chief Financial Officer |
|
Address : |
33, Raja Santosh Road, Flat No. 4c, Front Block, Alipore, Kolkata – 700027, West Bengal, India |
|
Date of Appointment : |
05.05.2014 |
|
PAN No.: |
ADBPA9564H |
|
|
|
|
Name : |
Mr. Pradeep Kumar Misra |
|
Designation : |
Non-Executive Independent Chairman |
|
|
|
|
Name : |
Mr. Binaya Kumar Dash |
|
Designation : |
Company Secretary |
|
Address : |
HIG-W-7, Niva Park, Phase-2, Brahmapur,
Kolkata – 700096, West Bengal, India |
|
Date of Appointment : |
14.02.2017 |
|
PAN No.: |
AGVPD5134B |
|
|
|
|
Name : |
Mr. Sunil Harbans Lal Katial |
|
Designation : |
Chief Executive Officer |
|
Address : |
1091. Park Royal Apartment, Plot No 10A,
Sector-9, Dwarka, New Delhi – 110077, India |
|
Date of Appointment : |
04.07.2016 |
|
PAN No.: |
ACRPK2195B |
SHAREHOLDING PATTERN
AS ON 31.12.2017
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Promoter
& Promoter Group |
1089800000 |
45.23 |
|
(B) Public |
1319435023 |
54.77 |
|
Grand Total |
2409235023 |
100.00 |
STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER
AND PROMOTER GROUP
|
Category of
Shareholder |
Total nos. shares
held |
Shareholding as a %
of total no. of shares (calculated as per SCRR, 1957 |
|
A1) Indian |
|
0.00 |
|
Any Other
(specify) |
1089800000 |
45.23 |
|
Electrosteel
Castings Limited |
1089800000 |
45.23 |
|
Sub Total A1 |
1089800000 |
45.23 |
|
A=A1+A2 |
1089800000 |
45.23 |
STATEMENT SHOWING
SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER
|
Category & Name
of the Shareholders |
Total no. shares
held |
Shareholding %
calculated as per SCRR, 1957 As a % of |
|
|
B1) Institutions |
0.00 |
||
|
Venture Capital Funds |
15305000 |
0.64 |
|
|
Foreign Portfolio Investors |
70236127 |
2.92 |
|
|
Hypnos Fund Limited |
70186127 |
2.91 |
|
|
Financial Institutions/ Banks |
1318963 |
0.05 |
|
|
Any Other (Specify) |
598183937 |
24.83 |
|
|
Pgs Invest Corp |
75187431 |
3.12 |
|
|
Sciil Steel Cast Iron Investments(Cyprus) Limited |
400859646 |
16.64 |
|
|
Gpc Mauritius Ii Lic |
87441860 |
3.63 |
|
|
Tara India Holdingd Limited |
34695000 |
1.44 |
|
|
Sub Total B1 |
685044027 |
28.43 |
|
|
B2) Central Government/ State Government(S)/ President Of India |
0.00 |
||
|
B3) Non-Institutions |
0.00 |
||
|
Individual Share Capital Upto INR 0.200 Million |
118631678 |
4.92 |
|
|
Individual Share Capital In Excess INR 0.200 Million |
200996063 |
8.34 |
|
|
Nbfcs Registered With RBI |
705001 |
0.03 |
|
|
Any Other (Specify) |
314058254 |
13.04 |
|
|
Trusts |
129672 |
0.01 |
|
|
Nri |
11328446 |
0.47 |
|
|
Clearing Members |
6903616 |
0.29 |
|
|
Nri – Non- Repat |
2218717 |
0.09 |
|
|
Bodies Corporate |
155977803 |
6.47 |
|
|
IFCI Limited |
90000000 |
3.74 |
|
|
Sanghai Commercial And Credits Private Limited |
47500000 |
1.97 |
|
|
Sub Total B3 |
634390996 |
26.33 |
|
|
B=B1+B2+B3 |
1319435023 |
54.77 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Selling of Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes. [Registered activity] |
||||||
|
|
|
||||||
|
Products / Services
: |
|
||||||
|
|
|
||||||
|
Brand Names : |
Not Available |
||||||
|
|
|
||||||
|
Agencies Held : |
Not Available |
||||||
|
|
|
||||||
|
Exports : |
Not Available |
||||||
|
|
|
||||||
|
Imports : |
Not Available |
||||||
|
|
|
||||||
|
Terms : |
Not Available |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Customers : |
Wholesalers, Manufacturer
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
2153 (Approximately) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers / Lenders : |
· Allahabad Bank · Indian Overseas Bank · Andhra Bank · Jammu & Kashmir Bank Limited · Bank of Baroda · LIC of India · Bank of India · Oriental Bank of Commerce · Bank of Maharashtra · Punjab National Bank · Canara Bank · Punjab & Sind Bank · Central Bank of India · SREI Infrastructure Finance Limited · Corporation Bank · State Bank of India · Dena Bank · Syndicate Bank · HUDCO · UCO Bank · ICICI Bank Limited · Union Bank of India · IL&FS Financial Services Limited · United Bank of India · Indian Bank · Vijaya Bank |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(INR
In Million)
Note : A) Working Capital facility from Banks & Buyers'
Credit is secured. The working capital facility carries interest rate of
11.00% p.a. and the Buyers' Credit carries interest rate at LIBOR plus spread
being 0.24% to 0.75%. |
|
Auditors : |
|
|
Name : |
B. Chhawchharia and Company Chartered Accountants |
|
Address : |
8A and 8B Satyam Towers, 3, Alipore Road, Kolkata – 700027, West
Bengal, India |
|
Tel. No.: |
91-33-24791951 |
|
Fax No.: |
91-33-24791952 |
|
E-Mail : |
|
|
Membership No.: |
008482 |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Promoter/ Associate Company : |
· Electrosteel Castings Limited |
|
|
|
|
Enterprises where
Key Management Personnel (KMP) have significant influence or control : |
· Rama Mining Consultants Private Limited · North Dhadhu Mining Company Private Limited · Asian Informatics Private Limited · Jhilmil Traders Private Limited · Bose Estates Private Limited · Sree Khemisati Constructions Private Limited · Hooghly Alloy and Steels Company Private Limited · Wilcox Merchants Private Limited · Tulsi Highrise Private Limited · Ampleforth Trading And Resources Private Limited · Hooghly Extrusions Limited |
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
INR 10/- each |
INR 50000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2409235023 |
Equity Shares |
INR 10/- each |
INR 24092.350 Million |
|
|
|
|
|
a) Share Capital Reconciliation
|
Equity Shares |
Number of Shares |
Amount in Million |
|
Opening balance |
2409235023 |
24092.350 |
|
Issued during the period |
-- |
-- |
|
Closing Balance |
2409235023 |
24092.350 |
b) Particulars of Equity Shareholders holding
more than 5% Shares at Balance Sheet date
|
Name of
Shareholder |
Number of Shares |
% of holding |
|
Electrosteel Castings Limited |
1089800000 |
45.23% |
|
Stemcor Cast Iron Investments Limited |
400909646 |
16.64% |
Rights, Preferences
and Restrictions attached to shares
c) The Company has only one class of Shares referred to as Equity Shares having face value of INR 10. Each holder of Equity Shares is entitled to one vote per Share. In the event of liquidation, the Equity Shareholders are eligible to receive in proportion to their shareholding the remaining assets of the Company, after distribution of the preferential amount.
d) During the Financial year ended 31st March 2015, pursuant to the Corporate Debt Restructuring (CDR) Scheme, the Company had made preferential allotment of 22.25 crores Equity Shares of INR 10 each fully paid to Electrosteel Castings Limited under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and Companies Act, 2013. The proceeds of the issue have been utilised for the capital expenditure at the Plant, which is in line with CDR Scheme.
e) 2507571148 (Two Hundred Fifty crore seventy five lac seventy one thousand and one hundred and forty eight) number of Equity Shares (“These Shares”) of INR 10/- each are reserved for issue and allotment on preferential basis to the lenders as per the Strategic Debt Restructuring (SDR) terms under loans contract with the lenders by conversion of loan for a sum of INR 25075.700 million. These Shares will rank pari-passu with the existing Equity Shares with the right of pro-rata dividend from the date of allotment and that these Shares will be listed on the stock exchanges where the existing Equity Shares are listed.
FINANCIAL DATA
[all figures are
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 |
24092.350 |
24092.350 |
24092.350 |
|
(b) Reserves & Surplus |
(29770.811) |
(15138.502) |
(13163.957) |
|
(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 |
(5678.461) |
8953.848 |
10928.393 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
68087.894 |
81591.481 |
88972.410 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
3.540 |
3.541 |
6.947 |
|
(d) long-term provisions |
83.390 |
59.620 |
43.376 |
|
Total
Non-current Liabilities |
68174.824 |
81654.642 |
89022.733 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
6962.927 |
6437.870 |
5801.978 |
|
(b) Trade payables |
4093.751 |
3657.164 |
2470.660 |
|
(c) Other current liabilities |
56585.998 |
33597.919 |
25368.993 |
|
(d) Short-term provisions |
26.221 |
20.981 |
17.276 |
|
Total
Current Liabilities |
67668.897 |
43713.934 |
33658.907 |
|
|
|
|
|
|
TOTAL |
130165.260 |
134322.424 |
133610.033 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
99100.752 |
103720.767 |
46479.020 |
|
(ii) Intangible Assets |
17.787 |
24.243 |
13.025 |
|
(iii) Capital work-in-progress |
17990.704 |
17505.414 |
68190.370 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
1635.660 |
|
(e) Other Non-current assets |
910.385 |
1094.124 |
0.000 |
|
Total
Non-Current Assets |
118019.628 |
122344.548 |
116318.075 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
400.777 |
|
(b) Inventories |
7917.619 |
7357.625 |
8190.232 |
|
(c) Trade receivables |
1272.047 |
2507.483 |
1143.549 |
|
(d) Cash and cash equivalents |
1341.873 |
529.389 |
2598.098 |
|
(e) Short-term loans and
advances |
0.000 |
0.000 |
1177.710 |
|
(f) Other current assets |
1614.093 |
1583.379 |
3781.592 |
|
Total
Current Assets |
12145.632 |
11977.876 |
17291.958 |
|
|
|
|
|
|
TOTAL |
130165.260 |
134322.424 |
133610.033 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
27742.958 |
28887.589 |
18312.407 |
|
|
Other Income |
935.312 |
157.144 |
156.049 |
|
|
TOTAL
|
28678.270 |
29044.733 |
18468.456 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
15342.533 |
18422.266 |
14805.738 |
|
|
Purchases of Stock-in-Trade |
0.000 |
49.477 |
586.180 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
1170.947 |
(718.595) |
(2071.824) |
|
|
Employees benefits expense |
1311.763 |
840.397 |
447.322 |
|
|
Other expenses |
7070.797 |
6693.560 |
4415.531 |
|
|
Excise duty on sale of goods |
2330.494 |
2910.642 |
0.000 |
|
|
Exceptional items |
0.000 |
(2765.192) |
0.000 |
|
|
TOTAL |
27226.534 |
25432.555 |
18182.947 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
1451.736 |
3612.178 |
285.509 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
11298.305 |
5266.327 |
4517.313 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(9846.569) |
(1654.149) |
(4231.804) |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
4788.230 |
2025.793 |
2008.509 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(14634.799) |
(3679.942) |
(6240.313) |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.110 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(14634.799) |
(3679.942) |
(6240.423) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
NA |
NA |
1366.446 |
|
|
TOTAL
EARNINGS |
NA |
NA |
1366.446 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
NA |
NA |
4724.577 |
|
|
Components and Stores parts |
NA |
NA |
726.156 |
|
|
Capital Goods |
NA |
NA |
2026.484 |
|
|
TOTAL
IMPORTS |
NA |
NA |
7477.217 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
(6.07) |
(1.53) |
(2.68) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
26721.105 |
14657.365 |
7336.271 |
|
Cash generated from / (used in) operations |
2453.143 |
7214.341 |
(3830.219) |
|
Net Cash flow from / (used in) operating activities |
2446.612 |
7212.930 |
(3835.924) |
QUARTERLY
RESULTS
|
Particulars |
|
(Unaudited) 1 st Quarter
Ended 30.06.2017 |
(Unaudited) 2nd
Quarter Ended 30.09.2017 |
|
|
|
|
|
|
Net Sales |
|
7731.710 |
7622.460 |
|
Total Expenditure |
|
7343.980 |
6812.140 |
|
PBIDT (Excl OI) |
|
387.730 |
810.320 |
|
Other Income |
|
417.710 |
60.720 |
|
Operating Profit |
|
805.440 |
871.040 |
|
Interest |
|
2806.040 |
2827.120 |
|
Exceptional Items |
|
775.000 |
200.000 |
|
PBDT |
|
(1225.600) |
(1756.080) |
|
Depreciation |
|
1196.350 |
1210.490 |
|
Profit Before Tax |
|
(2421.950) |
(2966.570) |
|
Tax |
|
NA |
NA |
|
Provisions and
contingencies |
|
NA |
NA |
|
Profit After Tax |
|
(2421.950) |
(2966.570) |
|
Extraordinary Items |
|
NA |
NA |
|
Prior Period Expenses |
|
NA |
NA |
|
Other Adjustments |
|
NA |
NA |
|
Net Profit |
|
(2421.950) |
(2966.570) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Operating Income * 365 Days) |
16.74 |
31.68 |
22.79 |
|
|
|
|
|
|
Account Receivables Turnover (Operating Income / Sundry Debtors) |
21.81 |
11.52 |
16.01 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
97.39 |
72.27 |
58.59 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
0.18 |
0.49 |
0.03 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.01 |
0.00 |
0.00 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
1.25 |
1.04 |
0.97 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
(17.92) |
11.47 |
9.34 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
(11.92) |
4.88 |
3.08 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
(20.62) |
0.00 |
10.49 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
0.13 |
0.69 |
0.06 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
PAT to Sales ((PAT
/ Sales) * 100) |
% |
(52.75) |
(12.74) |
(34.08) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(11.24) |
(2.74) |
(4.67) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
257.72 |
(41.10) |
(57.10) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.18 |
0.27 |
0.51 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.06 |
0.11 |
0.27 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
(0.04) |
0.07 |
0.08 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
4.22 |
4.26 |
4.24 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.18 |
0.27 |
0.51 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 4.49/- |
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 |
24092.350 |
24092.350 |
24092.350 |
|
Reserves & Surplus |
(13163.957) |
(15138.502) |
(29770.811) |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
10928.393 |
8953.848 |
(5678.461 |
|
|
|
|
|
|
long-term borrowings |
88972.410 |
81591.481 |
68087.894 |
|
Short term borrowings |
5801.978 |
6437.870 |
6962.927 |
|
Current Maturities of Long
term debt |
7336.271 |
14657.365 |
26721.105 |
|
Total
borrowings |
102110.659 |
102686.716 |
101771.926 |
|
Debt/Equity
ratio |
9.344 |
11.468 |
(17.922) |
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 |
18312.407 |
28887.589 |
27742.958 |
|
|
|
57.749 |
(3.962) |
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
|
18312.407 |
28887.589 |
27742.958 |
|
Profit/(Loss) |
(6240.423) |
(3679.942) |
(14634.799) |
|
|
(34.08%) |
(12.74%) |
(52.75%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
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 |
CORPORATE INFORMATION:
The company promoted
by Electrosteel Castings Limited is a public limited company, incorporated and
domiciled in India having its registered office at, 801, Uma Shanti Apartments,
Kanke Road, Ranchi - 834008. ESL has an envisaged capacity of 2.51 Million Ton
Per Annum (MTPA) Greenfield Integrated Steel Plant in Bokaro District
Jharkhand. ESL makes products like Pig Iron, Billets, TMT Bars, Wire Rods and
Ductile Iron(DI) Pipes. It consists of a Sinter Plant, Pellet Plant, Coke Oven,
Blast Furnace, Basic Oxygen Furnace, Billet Caster, Wire Rod Mill, Ductile Iron
Pipe Plant, Bar Mill and Power Plant. It also manufactures DI Pipe used for
Water supply and Pressure sewerage application. The Company's shares are listed
and publically traded on the National Stock Exchange of India and Bombay Stock
Exchange.
ECONOMIC OVERVIEW
This year has been marked by several historic economic
policy developments. On the domestic side, a constitutional amendment paved the
way for the long-awaited and transformational goods and services tax (GST)
while demonetisation of the large currency notes signaled a regime shift to
punitively raise the costs of illicit activities. On the international front,
United Kingdom's decision to leave the European Union and the outcome of
presidential elections in United States of America, both the events are
expected to have long-term effects on the global economy. India has emerged as
one of the fastest growing major economy in the world as per the Central
Statistics Organisation (CSO) and International Monetary Fund (IMF). As per the
Economic Survey 2016-17, the Indian economy should grow between 6.75% and 7.5%
in Financial Year 2017-18. The Indian Government's decisive policy manoeuvres
towards ensuring fiscal consolidation and pegging back inflation will help it
maintain economic stability in the years ahead. India's eight core
infrastructure industries coal, crude oil, natural gas, refinery products,
fertilisers, steel, cement and electricity registered cumulative growth of 4.9%
during the April-November period compared to 2.5% a year ago.
GLOBAL STEEL INDUSTRY
Steel market conditions at a holistic level at the end of 2016 was mixed but overall optimistic, looking upto a rebound in Chinese market conditions to resurrect. The system, despite being weighed down by issues on stability of global economic/manufacturing growth and the streamlining of still-lingering excess capacity situation.
During the period growth in the global steel demand was sluggish, mainly attributable to weaker than expected performance in the emerging and developing economies. The slowdown in the emerging economies has revealed in deceleration in steel usage. Growth in China which had been the main driver for both demand and supply in the past, has moderated significantly reflecting the structural transformation of the economy. China has been exporting steel despite several barricading measures taken by the affected countries.
With demand remaining lukewarm for major part of the year and impact of excess capacity remaining unabated, steel prices remained on uneven grounds generally only to witness some bouncing back globally towards the end of the year.
An equally-strong rally was noted in global cooking coal prices specially in latter part of 2016, where rising demand in face of a stringent supply side impacted price markedly.
World crude steel production was stagnant in 2016. However, Asia is the only major steel producing region showing moderate increase in steel production and India's steel production has shown the highest growth. World's steel demand grew 0.2% in 2016 and is set to grow 0.5% in 2017.
INDIAN STEEL INDUSTRY
During the year, India's steel production has shown the highest growth. Indian steel demand is set to grow at 5.7% in 2017 vis-à-vis 5.4% growth in 2016, highest among the large economies. India is set to beat Japan to second position in 2018. The steel vision by Government of India envisage creation of crude steel capacity of 300 MTPA by 2030-31 and per capita steel consumption of 160 kg against current 61 kg in India. In India mild steel consumption increase during 16-17 is expected at 76.78 MT - a likely growth of 4.5%. Consumption of TMT is estimated to be 27.4 MT (projected growth of 4%).
Though China continued to rule the world crude steel production and consumption scenario in 2016, the year saw the sustenance of India as the most stable market and a major global investment destination and the country maintained its global ranks of being the 3rd largest crude steel producer and 3rd largest consumer of finished steel during the year.
PERFORMANCE OF THE
COMPANY
The Company is selling Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes in the open market. It’s flagship product - Ductile Iron Pipe has established its presence in the market and is contributing significantly to Company’s growth. Continuous efforts for reduction of production cost and improvement in operational efficiency has resulted in the Company being able to report positive Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) for the year.
Owing to the shutdown of the Oxygen Plant as a result of an
accident and to sustain the production level, your Company had to resort to
procurement of oxygen from Open Market which resulted in increase in cost and
increase in operating and maintenance cost which adversely affected performance
of the Company to some extent. Wide fluctuation in raw material prices,
especially imported coking coal, also had a negative impact. Effective steps
towards implementing better guidelines for operational procedure and
precautionary measures thereto have been put in place. Continuous efforts were
initiated to improve performance of the Company in both, quantitative and
qualitative terms.
INDEX OF CHARGES:
|
S No |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
C50674753 |
10547664 |
L&T FINCORP LIMITED |
22/01/2015 |
31/03/2015 |
- |
400000000.0 |
L & T HOUSE, BALLARD ESTATE, MUMBAI MH400001IN |
|
2 |
G46675963 |
10493325 |
VISTRA ITCL (INDIA) LIMITED |
17/04/2014 |
26/04/2017 |
- |
195400000.0 |
IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EAST MUMBAI JH827013IN |
|
3 |
G49525967 |
10487072 |
VISTRA ITCL (INDIA) LIMITED |
24/03/2014 |
26/04/2017 |
- |
2986800000.0 |
IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA KURLA COMPLEX BANDRA EAST MUMBAI JH827013IN |
|
4 |
G44633055 |
10484687 |
VISTRA ITCL (INDIA) LIMITED |
24/01/2014 |
26/04/2017 |
- |
102593800000.0 |
IL & FS FINANCIAL CENTRE PLOT NO C22 G BLOCK BANDRA KURLA COMPLEX BANDRA EAST MUMBAI JH827013IN |
|
5 |
B28352359 |
10324558 |
SREI INFRASTRUCTURE FINANCE LIMITED |
26/12/2011 |
- |
- |
5000000000.0 |
VISHWAKARMA,86C,TOPSIA ROAD (SOUTH), KOLKATA WB700046IN |
|
6 |
B71995393 |
10261324 |
STATE BANK OF INDIA |
11/01/2011 |
30/03/2013 |
- |
8650000000.0 |
RELIANCE HOUSE34 J L NEHRU ROAD KOLKATA WB700071IN |
|
7 |
C39917752 |
10066956 |
IL & FS TRUST COMPANY LIMITED |
29/08/2007 |
26/03/2013 |
12/01/2015 |
85120000000.0 |
IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA KURLA COMPLEX BANDRA EAST MUMBAI MH400051IN |
|
8 |
B95832622 |
10440089 |
THE BANK OF BARODA |
28/06/2013 |
- |
07/02/2014 |
72500000.0 |
3 WALCHAND HIRACHAND MARGBELLARD PIER MUMBAI MH400001IN |
|
9 |
B95589255 |
10372111 |
STATE BANK OF TRAVANCORE |
30/07/2012 |
- |
29/01/2014 |
560000000.0 |
CORPORATE FINANCE BRANCH112-115 TULSIANI CHAMBERS, 212 NARIMAN POINT MUMBAI MH400021IN |
|
10 |
B95234266 |
10378639 |
STATE BANK OF HYDERABAD |
19/09/2012 |
- |
18/01/2014 |
800000000.0 |
COMMERCIAL BRANCH, TRINITY TOWER, GROUND FLOOR 83, TOPSIA ROAD KOLKATA WB700046IN |
STATEMENT OF
UNAUDITED FINANCIAL RESULT FOR THE QUARTER AND HALF YEAR YENDED 30TH
SEPTEMBER 2017
|
Income from Operations |
30.09.2017 Unaudited |
30.06.2017 Unaudited |
30.09.2017 Unaudited |
|
(a) Net sates/income from operations (Net of excise duty) |
7622.460 |
7731.709 |
15354.169 |
|
(b) Other Operating Income |
60.715 |
417.708 |
478.423 |
|
Total income from operations (net) |
7683.175 |
8149.417 |
15832.592 |
|
Expenses |
|
|
|
|
Cost of materials
consumed |
4769.083 |
5262.093 |
10031.176 |
|
Purchases of stock-in trade |
|
|
|
|
Changes in inventories of finished goods. work-in-progress
and stock in trade |
28.706 |
(825.895) |
(797.189) |
|
Excise duty on sale of goods |
0.000 |
662.974 |
662.974 |
|
Employee benefits expense |
365.343 |
369.563 |
734.906 |
|
Finance Costs |
2827.124 |
2806.036 |
5633.160 |
|
Depreciation and Amortization Expenses |
1210.493 |
1196.351 |
2406.844 |
|
Other Expenses |
1648.999 |
1875.242 |
3524.241 |
|
Total expenses |
10849.748 |
11346.364 |
22196.112 |
|
Profit/ (Loss) from ordinary activities after finance cost
but before exceptional items |
(3166.573) |
(3196.947) |
(6363.520) |
|
Exceptional items |
(200.000) |
(775.000) |
(975.000) |
|
Net Profit / (Loss) for the period |
(2966.573) |
(2421.947) |
(5388.520) |
|
Other Comprehensive Income |
|
|
|
|
Items that will not be
reclassified to profit or loss |
5.79 |
5.79 |
11.58 |
|
Income tax relating to item that
will not be reclassified to profit or loss |
|
|
|
|
Total Other Comprehensive Income |
5.79 |
5.79 |
11.58 |
|
Total Other Comprehensive Income for the period |
(2966.573) |
(2421.947) |
(5388.520) |
|
Paid up equity share capital (Face Value of INR 10/-each) |
24092.35 |
24092.35 |
24092.35 |
|
Earnings per share (before extraordinary items) of INR
10/- each (not annualized): |
|
|
|
|
(a) Basic |
(1.23) |
(1.01) |
(2.24) |
|
(b) Diluted |
(1.23) |
(1.01) |
(2.24) |
STATEMENT OF
UNAUDITED ASSETA AND LIABILITIES
|
SOURCES OF FUNDS |
|
|
30.09.2017 |
|
|
|
|
|
|
I. EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
24092.350 |
|
(b) Reserves & Surplus |
|
|
(35158.172) |
|
(c) Money received against share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
|
0.000 |
|
Total Shareholders’
Funds |
|
|
(11065.822) |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
64227.814 |
|
(b) Deferred tax liabilities (Net) |
|
|
0.000 |
|
(c) Other long term liabilities |
|
|
0.000 |
|
(d) long-term provisions |
|
|
84.332 |
|
Total Non-current Liabilities |
|
|
64312.146 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
5920.070 |
|
(b) Trade payables |
|
|
6923.724 |
|
(c) Other current liabilities |
|
|
64384.393 |
|
(d) Short-term provisions |
|
|
41.133 |
|
Total Current
Liabilities |
|
|
77269.320 |
|
|
|
|
|
|
TOTAL |
|
|
130515.644 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
96904.726 |
|
(ii) Intangible Assets |
|
|
15.174 |
|
(iii) Capital work-in-progress |
|
|
17716.779 |
|
(iv) Intangible assets under development |
|
|
0.000 |
|
(b) Non-current Investments |
|
|
0.000 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
0.000 |
|
(e) Other Non-current assets |
|
|
637.359 |
|
Total Non-Current
Assets |
|
|
115274.038 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
|
|
(b) Inventories |
|
|
8510.089 |
|
(c) Trade receivables |
|
|
2093.729 |
|
(d) Cash and cash equivalents |
|
|
2424.999 |
|
(e) Short-term loans and advances |
|
|
0.000 |
|
(f) Other current assets |
|
|
2212.789 |
|
Total Current
Assets |
|
|
15241.606 |
|
|
|
|
|
|
TOTAL |
|
|
130515.644 |
NOTES :
- The Company's Integrated Steel & DI Pipe Plant is in the State of Jharkhand, India. A part of plant facility is still under construction and erection and cost of equipment, pre-operative and other expenditure related thereto has therefore been carried forward under capital work in progress.
- The Company has incurred significant amount of losses leading to erosion of networth and current liabilities have exceeded the current assets of the Company. Interest and other terms and condition of repayment etc. as per the sanctioned CDR package could not be complied with and lenders in terms of RBI Circular dated 8th July 2015 and 24th September 2015, invoked “Strategic Debt Restructuring” (SDR) in respect of the Company. Pending implementation of SDR, State Bank of India in it’s capacity as financial creditor has filed a petition on 27th June 2017 under “Insolvency and Bankruptcy Code, 2016” (IBC) with Hon’ble National Company Law Tribunal, Kolkata Bench (NCLT). On 21st July 2017, the NCLT vide it’s order of even date admitted the said petition and Corporate Insolvency Resolution Process (CIRP) has been initiated in terms of IBC and related rules and regulation issued thereunder. Mr. Dhaivat Anjaria (having Registration No: IBBI/IPA-001/IPP00088/2017-18/10184) was appointed as Interim Resolution Professional (IRP) and thereafter has been confirmed to be Resolution Professional by Committee of Creditors (COC) constituted under IBC.
- CIRP is currently in progress and as a part of the said process, resolution plan is to be prepared, approved by COC and implemented on approval thereof by NCLT. Pending this and measures to be adopted as a part of the resolution process, the financial statements has been continued to be prepared on a going concern basis.
- Interest on borrowings have been provided for considering the rates and terms and conditions stipulated originally as per CDR Package or otherwise stipulated/advised in this respect. Adjustments, if any required in this respect pursuant to the resolution plan will be given effect to on completion of CIRP and approval thereof by NCLT. Pending finalisation of Resolution Plan and certaintity as to the realisation of unused tax losses, adjustments for deferred taxation have not been given effect to during the period.
- This being interim financial statement certain disclosures/ adjustments etc. pending compilation and ongoing reconciliation etc. in respect of the following could not be ascertained and given effect to during the period:
a) Physical
Verification of Inventory and reconciliation thereof with the books of
account;
b) Confirmation and Reconciliation of Bank balance including fixed deposits
with Banks;
c) Independent Confirmation of debit and credit balances including Trade
Receivables/ Trade Payables and reconciliation of these balances including
Statutory liabilities and admitted claims in respect of amounts outstanding as
on 21st July 2017 with respect to financial and operational creditors;
d) Non-recognition of additional interest (over and above as per 3 above),
management fees and other charges in respect of Non-CDR lender SREI pending
finalisation of amount payable in this respect;
e) Contingent Liability/ Provision if any with respect to matters related to
Entry Tax and custom duty including interest etc., due to non-fulfilment of
export obligations; and
f) Re-appointment of Mr. Rama Shankar Singh, as a whole time director with
effect from February 06, 2017 of the Company and the remuneration paid to him
with effect from February 06, 2017 has since not been approved by the
Shareholders in the annual general meeting of the Company held on November 07,
2017.
Necessary adjustments/disclosures, if any, with respect to above will be given effect to on determination of amount thereof.
- Exceptional items relate to the interim payment received from the insurers against 'Loss of profit' claim made by the company due to the accident at the oxygen plant in May, 2016. The balance amount will be recognised on acceptance thereof by the insurance authorities.
- Considering the nature of the Company’s business operations and future prospects and possible capacity utilisation etc. on completion of entire plant facilities, no separate reportable segments (business and/ or geographical) in terms of IND AS 108 ‘Operating Segments’ has been considered necessary.
- Goods and Service Tax ("GST") has been implemented with effect from 1st July 2017 and therefore Revenue from Operations for the quarter ended 30th September 2017 are net of GST. Revenue from operations and expenses for the previous periods being inclusive of excise duty are not comparable with corresponding figures of quarter and six months ended 30th September 2017.
- The above financial results which have been prepared in accordance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016 have been subjected to Limited Review by the Statutory Auditors. Since the powers of the board of directors has been suspended after commencement of CIRP, the above financial results have been certified by Mr. Sunil Katial, Chief Executive Officer and Mr. Ashutosh Agarwal, Chief Financial Officer and thereafter provided to the Resolution Professional. The Board of Directors of the Company was in charge of the business and conduct of the Company until 21st July 2017 i.e. the date when the CIRP process has commenced and IRP/Resolution Professional had been appointed and taken charge of operations of the company. The Resolution Professional has not conducted an independent verification of such statement. The Resolution Professional has therefore relied upon the certifications, representations and statements made by Mr. Sunil Katial, Chief Executive Officer, Mr. Ashutosh Agarwal, Chief Financial Officer in relation to the financial accounts and records.
- Previous periods' figures have been reclassified wherever appropriate to conform to current periods' presentation.
CONTINGENT
LIABILITIES:
(INR
in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Contingent
Liabilities not provided for in respect of: |
|
|
|
Central Excise & Service Tax |
0.004 |
0.004 |
|
Customs Duty (under EPCG) |
0127 |
0.074 |
|
Customs Duty (others |
0.006 |
0.006 |
|
Sales Tax |
0.016 |
0.013 |
|
Entry Tax |
0.002 |
-- |
|
|
|
|
|
Guarantees given by banks on behalf of the Company |
0.003 |
0.003 |
|
Right of Recompense of Lenders as per CDR Guidelines |
0.085 |
0.061 |
|
Other pending claims & disputes |
0.001 |
0.001 |
|
Claims filed against the company by the vendors 1 |
0.019 |
0.019 |
|
There are several Civil and criminal proceedings pending against the Company, the financial liability thereof, if any, is unascertainable |
-- |
-- |
|
Note : The Company’s pending litigations comprises of claims
against the company and proceedings pending with Statutory/ Government
Authorities. The Company has reviewed all its pending litigations and
proceedings and has made adequate provisions, and disclosed contingent
liabilities, where applicable, in its financial statements. The Company does
not expect the outcome of these proceedings to have a material impact on its
financial positions. Future cashflow, if any in respect of (a), (d), (e) and
(f) is dependent upon the outcome of judgements/ decisions. |
||
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
·
Railway Sidings
·
Computer Software
PRESS RELEASE:
STOCKS RADAR: WELSPUN
INDIA, INTERGLOBE AVIATION, ELECTROSTEEL STEEL
Date: 10.01.2018
Indian shares swung, with the key gauges holding close to their all-time high levels, ahead of the October to December earnings reports that start Thursday.
The S&P BSE Sensex rose as much as 0.36 percent to 34,565, while the NSE Nifty 50 Index rose as much as 0.17 percent to 10,655.
The market breadth was tilted in the favour of buyers. Thirteen of the 19 sector gauges compiled by BSE Ltd. rose, led by the S&P BSE Realty Index’s 0.73 percent advance. On the flip-side, the S&P Consumer Durables Index was the worst performer, falling 0.33 percent.
Here Are The Stocks
Moving This Morning:
Spice Mobility:
Divests Stake
Shares of the mobile phone manufacturer rose as much as 6.62 percent to INR29, extending a two-day gaining streak.
Spice Digital Ltd., a subsidiary of the company, has divested its entire stake in Sunstone Eduversity Limited. The stock's trading volume was 1.7 times the 20-day average.
Welspun India: Rises On Block Deal
Shares of the textile manufacturer rose as much as 12.4 percent, which is the most in almost two years, to INR82.5.
Around of 4.6 crore shares or 4.7 percent equity changed hands in three block deals, according to Bloomberg data. The relative strength index of the stock was 71, indicating it may have been overbought.
Interglobe Aviation: Rises On Bullish Rating
Shares of the country’s largest airline rose as much as 2.36 percent to Rs 1,256, extending its gaining streak for a third consecutive session. Brokerage Credit Suisse initiated coverage on Inter Globe Aviation with an ‘Outperform’ rating and a target price of INR 1,650.
The analyst consensus rating is equivalent to ‘Buy’ for the stock, which trades 9.7 percent below the Bloomberg consensus one-year target price.
Electrosteel Steel:
Takeover Buzz
Shares of the ductile pipe manufacturer rose as much as 5.67 percent to INR 7, extending gains for a fourth straight session.
Tata Steel Ltd., Vedanta Ltd., Renaissance Steel India and Edelweiss Alternative Asset Advisors are said to be interested in taking over Electrosteel Steel and have submitted their resolution plans for the same, according to the company’s filing. Vedanta is said to be highest bidder, according to a report in Economic Times.
Magma Fincorp:
Compelling Idea
Shares of Magma Fincorp Ltd rose 3.5 percent to INR 174 on Wednesday, after brokerage house IIFL Ltd. put out a 'Buy' rating on the stock.
The Kolkata-based financial services provider is a "compelling idea" considering the improvement in business performance and an impending credit rating upgrade, the brokerage said in a note.
INSOLVENCY: TATA STEEL, 3 OTHERS SUBMIT
RESOLUTION PLANS FOR ELECTROSTEEL
Date : 05.01.2018
With Electrosteel, two of the five steel companies on RBI's list of 12 crossed deadline for submitting resolution plans
Tata Steel, Vedanta, Edelweiss ARC, and Renaissance Steel India are likely to have submitted resolution plans for Electrosteel Steels, one of the 12 companies mandated by the Reserve Bank of India (RBI) for insolvency. The last date for submitting resolution plans was Thursday.
A Tata Steel spokesperson said: “As a process, we do assess and evaluate various strategic opportunities for growth. This is an ongoing process in the company.” An e-mail sent to Vedanta went unanswered while Edelweiss did not comment.
Electrosteel Steels has got a 90-day extension from the National Company Law Tribunal (NCLT), and it is with effect from January 17, 2018. According to the Insolvency and Bankruptcy Code rules, an application for an approved resolution plan has to be filed with the NCLT within 180 days, and can be extended by another 90 days.
Resolution plans, however, could be accepted even beyond the deadline.
With Electrosteel Steels, two of the five steel companies on the RBI’s list of 12 have crossed the deadline for submitting resolution plans, the first being Monnet Ispat & Energy. Monnet, however, had received a single bid from JSW Steel.
Among those who had submitted an expression for interest for Electrosteel Steels were Srei Infrastructure Finance and Mesco Steel, apart from Tata Steel, Vedanta, Edelweiss ARC and Renaissance Steel India. Sources indicated that even Liberty House was interested. Asked whether Liberty House had submitted a resolution plan, a spokesperson said, “At this point, we don’t have anything to say.”
Hemant Kanoria, chairman of Srei Infrastructure Finance, said it was not putting in a bid for the company.
Srei has an exposure of Rs 3-4 billion in Electrosteel.
Electrosteel Steels has a debt of about Rs 102.88 billion from a consortium of banks. A number of stumbling blocks had tripped Electrosteel Steels, such as delay in commissioning, which increased the project cost by 20 per cent.
Electrosteel has a planned steelmaking capacity of 2.51 million tonnes and a commissioned capacity of 1.5 million tonnes.
Banks had supported the company largely due to raw material linkages. Electrosteel Steels was promoted by Electrosteel Castings, which had secured Parbatpur coal mines, having reserves of 231 million tonnes. Plus, it had an iron ore mine and a non-coking coal mine in Jharkhand.
Electrosteel Steels was to source iron ore and coking coal from Electrosteel Castings for a period of 20 years. But the coal blocks of Electrosteel Castings were de-allocated in 2014, forcing Electrosteel Steels to buy raw materials from the market at high prices, even as prices for the product witnessed a crash.
Electrosteel was one of the first companies for which lenders had applied strategic debt restructuring when the RBI came up with the mechanism to tackle bad loans. Incidentally, Tata Steel was one of the front runners when the company was initially put on the block.
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 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 63.61 |
|
|
1 |
INR 90.17 |
|
Euro |
1 |
INR 78.95 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVT |
|
|
|
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TRUP |
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 |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.