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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

492774

Report Date :

17.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

MUKAND LIMITED (w.e.f. 23.03.1989)

 

 

Formerly Known As :

MUKAND IRON AND  STEEL WORKS LIMITED

 

 

Registered Office :

Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai - 400021, Maharashtra

Tel. No.:

91-22-61216666

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

29.11.1937

 

 

Com. Reg. No.:

11-002726

 

 

Capital Investment / Paid-up Capital :

INR 1470.500 Million

 

 

CIN No.:

[Company Identification No.]

L99999MH1937PLC002726

 

 

IEC No.:

0388001151

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACM5008R

 

 

GSTIN/UIN :

Not Divulged

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of special alloy steel / stainless steel, billets, bars, rods, wire rods, EOT cranes, material handling equipment and other industrial machinery and comprehensive engineering services. (Registered Activity)

 

 

No. of Employees :

Information declined by the management

 

 

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 :

Exist

 

 

Comments :

Subject is an established company incorporated in the year 1937 having satisfactory track record.


For the financial year 2017, revenue of the company has declined which has further resulted into a loss.


However, the company possesses sound financial profile marked by healthy net worth base along with favourable gap between trade payables to its trade receivables and company’s long established track record of business operation

Further, we could also find that Mukand Limited and Sumitomo Corporation (SC), Japan has agreed to enter into a joint venture agreement to engage in the business of rolling and finishing of alloy steel. As a result of this the management has proposed to transfer its Alloy Steel Rolling and Finishing business into, “Mukand Vijayasagar Steel Limited” {MVSL; wholly owned subsidiary (WOS)} and thereafter MVSL would be amalgamated with “Mukand Alloys Steels Private Limited” {MASLP (WOS)}. The Appointed date under the scheme is 1st January 2017. Thereafter Sumitomo Corporation (SC) will be inducted as strategic partner for investment for expansion and have a worldwide marketing network to widen the Company’s customer base. The joint venture will bring together the expertise of both Companies, building on Mukand’s engineering and technical expertise and Sumitomo’s global resources. Infusion of equity will enable the Company to reduce the debts levels.


Trade relations are reported as fair. Business is active. Payments terms are reported as slow but correct.


The company can be considered for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

BRICKWORK

Rating

Term Loan = (BB+)

Rating Explanation

Moderate risk of default.

Date

06.09.2017

 

 

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 31-03-2016.

 

 

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 17.02.2018

 

 

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 DENIED

 

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-61216666)

 

(Tel. No.: 91-22-21727500 – Number is continuously ringing)

 

 

LOCATIONS

 

Registered Office :

Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400021, Maharashtra, India

Tel. No.:

91-22-61216666/ 61216629/ 21727500

Fax No.:

91-22-22021174

E-Mail :

investors_cell@mukand.com

mukandop@bom3.vsnl.net.in

co.secretary@mukand.com 

info@mukand.com

kjmallya@mukand.com

Website :

www.mukand.com

 

 

Factory :

Thane-Belapur Road, Dighe, Kalwe, District: Thane - 400605, Maharashtra India

Tel. No.:

91-22-21727500/ 7700

Fax No.:

91-22-25348179

 

 

Plant Location :

Located at:

 

  • Dighe, Thane - 400 605, Maharashtra, India
  • Ginigera - 583 228, Karnataka, India

 

 

Branch Office 1 :

Plot No-1085, Sector-58, Faridabad - 121004, Haryana, India

 

 

Branch Offices :

Also Located at :

 

  • Bangalore
  • Chennai
  • Delhi
  • Kolkata
  • Visakhapatnam

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Nirajkumar Ramkrishnaji Bajaj

Designation :

Managing Director

Address :

Mount Unique, 13th Floor, 62 Peddar Road, Mumbai – 400026,  Maharashtra, India

Date of Birth/ Age :

10.10.1954

Qualification :

Commerce Graduate and MBA from Harvard Business School, U.S.A.

Experience and Expertise :

Refer Explanatory Statement for items 8,9 and 10 of Notice (Background details).

Date of Appointment :

05.07.2014

DIN No.:

00028261

 

 

Name :

Mr. Rajesh Viren Shah

Designation :

Managing Director

Address :

7, Janaki Kutir, Juhu Tara Road, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/ Age :

01.10.1951

Qualification :

M.A. in Mathematics from Cambridge University, U. K. and MBA from University of California at Berkeley, U.S.A. , Management Development Programme at Harvard Business School, U.S.A.

Experience and Expertise :

Refer Explanatory Statement for items 8, 9 and 10 of Notice (Background details).

Date of Appointment :

03.07.1989

DIN No.:

00033371

 

 

Name :

Mr. Suketu Viren Shah

Designation :

Managing Director

Address :

A/52 Darshan Apartments, Mount Pleasant Road, Malabar Hill, Mumbai – 400006, Maharashtra, India

Date of Birth/ Age :

04.12.1954

Qualification :

B.Com. (Hons.) and MBA from Harvard Business School, U.S.A

Experience and Expertise :

Refer Explanatory Statement for items 8, 9 and 10 of Notice (Background details).

Date of Appointment :

05.07.2008

DIN No.:

00033407

 

 

Name :

Mr. Prakash Vasantlal  Mehta

Designation :

Director

Address :

123A, Maker Tower, Cuffe Parade, Colaba, Mumbai -400005, Maharashtra, India

Date of Appointment :

27.09.2007

DIN No.:

00001366

 

 

Name :

Mr. Vinod Sakarchand Shah

Designation :

Director

Address :

11, Om Surya Vihar, Co-Opertive Housing Society Limited, Road No 25 – B, Sion Matunga Scheme No 6, Mumbai – 400022, Maharashtra, India

Date of Birth/ Age :

07.11.1930

Qualification :

Commerce Graduate

Experience and Expertise :

He joined the services of the Company in the year 1953. He was Vice Chairman

of Association of Indian Mini-Blast Furnace (AIMBF), New Delhi, President of Steel Furnace Association of India (SFAI), New Delhi and Captive Power Producers Association (CPPA) and is at present a member of the Executive Committee of CPPA. He has held various positions in the Company, including that of General Manager, Dy. Chief Executive, Sr. Vice President, Jt. President, Advisor (Special Projects) and presently is a nonexecutive Director of the Company. He has been on the Board of the Company since 1989.

Date of Appointment :

03.07.1989

DIN No.:

00033327

 

 

Name :

Mr. Dhirajlal Shantilal Mehta

Designation :

Director

Address :

301/302 Goragandhi Apartments, 3 Laburnam Road, Gamdevi, Mumbai – 400007, Maharashtra, India

Date of Appointment :

22.07.1976

DIN No.:

00038366

 

 

Name :

Mr. Narendra Jeewanlal  Shah

Designation :

Director

Address :

43 B, Meher Apartment, Altamount Road, Peddar Road, Mumbai - 400026, Maharashtra, India

Date of Birth/ Age :

17.11.1928

Qualification :

Arts Graduate

Experience and Expertise :

He joined the services of the Company in the year 1948 as a Management Trainee and has held different managerial positions at different times. He was initially posted in Batala as Chief Executive of Batala Engineering Company Limited, which was transferred to Mukand Limited. During the financial year 1949- 50. He was Assistant Chief Executive when he left the Company in 1969. He has been on the Board of the Company since January 16, 1990.

Date of Appointment :

16.01.1990

DIN No.:

00047403

 

 

Name :

Mr. Naresh Chandra Sharma

Designation :

Director

Address :

Flat No. 605, Dosti Blossoms, Dosti Acres Complex, Off. S.M. Road, Wadala (East), Mumbai - 400037, Maharashtra, India

Date of Appointment :

29.05.2004

DIN No.:

00054922

 

 

Name :

Ms. Bharti Ram Gandhi

Designation :

Director

Address :

Amalfi, 6th Floor, 15 L D Ruparel Marg,Malbar Hill, Mumbai - 400006, Maharashtra, India

Date of Appointment :

11.02.2015

DIN No.:

00306004

 

 

Name :

Mr. Amit Yadav

Designation :

Director

Address :

D-3, Jeevan Jyot Setalwad Lane, Nepeansea Road, Mumbai - 400006, Maharashtra, India

Date of Appointment :

10.11.2014

DIN No.:

02768784

 

 

KEY EXECUTIVES

 

Name :

Mr. Surendra Bhaichand Jhaveri

Designation :

Chief Financial Officer

Address :

144, Shanti Niwas, Jain Society, Block No.1, Sion (West), Mumbai - 400022, Maharashtra, India

Date of Appointment :

29.05.2014

PAN No.:

AADPJ4783A

 

 

Name :

Mr. Jayavanth Kallianpur Mallya

Designation :

Company Secretary

Address :

Flat No. 23, A-6/7, Happy Jeevan, L. I. C. Colony, Borivli (West), Mumbai - 400103, Maharashtra, India

Date of Appointment :

01.10.2006

PAN No.:

AAFPM5030K

 

 

Name :

Mr. Arvind Madhav Kulkarni

Designation :

Chief Executive Officer

Address :

504,Swastik Apartment, Khopat, Thane - 400601, Maharashtra, India

Date of Appointment :

10.11.2014

PAN No.:

AIHPK4186G

 

 

Steel Division

 

 

Name :

B K Tiwari

Designation :

Chief Operating Officer

(Steel Plant, Ginigera)

 

 

Name :

V M Mashruwala

Designation :

Chief of Marketing

 

 

Name :

Virendra K Mital

Designation :

Business Development Director

 

 

Industrial Machinery Division

 

 

Name :

R Jagannathan

Designation :

Chief Executive

 

 

 

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of

(A) Promoter and Promoter Group

103403145

73.13

(B) Public

38002716

26.87

Grand Total

141405861

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 (calculated as per SCRR, 1957)As a % of

A1) Indian

0.00

Individuals/Hindu undivided Family

34049043

24.08

Shri Rahul Bajaj

712044

0.50

Shri Niraj Bajaj

11786730

8.34

Shri Rajesh V Shah

7200842

5.09

Shri Suketu V Shah

1015381

0.72

Shri Sanjivnayan Bajaj

1787

0.00

Shri Shekhar Bajaj

711134

0.50

Shri Madhur Bajaj

717133

0.51

Shri Anant Bajaj

86400

0.06

Smt Minal Bajaj

192000

0.14

Smt Sunaina Kejriwal

1363

0.00

Smt Suman Jain

3744

0.00

Smt Anjana Viren Shah ( Nee Anjana Munsif)

20634

0.01

Shri Narendrakumar J Shah

99605

0.07

Smt Jyoti Shah

19768

0.01

Smt Bansri Rajesh Shah

3431542

2.43

Smt Czaee Sukumar Shah

4975352

3.52

Priyaradhika Rajesh Shah

960046

0.68

Shri Kaustubh Rajesh Shah

96000

0.07

Shri Rishabh Sukumar Vir

2017538

1.43

Any Other (specify)

69354102

49.05

Akhil Investments and Traders Private Limited

260

0.00

Bachhraj and Co Private Limited

3350692

2.37

Bachhraj Factories Private Limited

1378168

0.97

Bajaj Holdings and Investment Limited

8113564

5.74

Bajaj Sevashram Private Limited

2500160

1.77

Baroda Industries Private Limited

15726616

11.12

Jamnalal Sons Private Limited

28334773

20.04

Jeewan Limited

4785369

3.38

Mukand Engineers Limited

1362400

0.96

Niraj Holdings Private Limited

8000

0.01

Kamalnayan Investment and Trading Private Limited

7000

0.00

Madhur Securities Private Limited

7000

0.00

Rahul Securities Private Limited

7000

0.00

Rupa Equities Private Limited

7000

0.00

Sanraj Nayan Investments Private Limited

3494

0.00

Shekhar Holdings Private Limited

7000

0.00

Sidya Investments Limited

160000

0.11

Valiant Investments and Trades Private Limited

260

0.00

Isarnan Steel and Minerals Private Limited

896310

0.63

Oremet Minerals And Metal Private Limited

100

0.00

Shri Niraj Bajaj (A/c Niravnayan Trust)

27200

0.02

Shri Neelakantan K. Iyer (A/c Jadavdevi Suketu Trust)*

2671636

1.89

Shri Rajesh V Shah (A/c Decree Trust)

100

0.00

Sub Total A1

103403145

73.13

A2) Foreign

0.00

A=A1+A2

103403145

73.13

 

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of

B1) Institutions

0

0.00

Mutual Funds/

924

0.00

Foreign Portfolio Investors

4013

0.00

Financial Institutions/ Banks

167767

0.12

Insurance Companies

6383498

4.51

LIFE INSURANCE CORPORATION OF INDIA

6383299

4.51

Sub Total B1

6556202

4.64

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

12197104

8.63

Individual share capital in excess of INR 0.200 Million

7566410

5.35

NBFCs registered with RBI

83256

0.06

Any Other (specify)

11599744

8.20

Trusts

740

0.00

Employee welfare fund

2260152

1.60

NRI – Repat

1340

0.00

NON-RESIDENT (OTHERS)

2023

0.00

NON RESIDENT INDIANS

371760

0.26

Clearing Members

964317

0.68

OTHER SCHEDULED BANKS

597

0.00

NRI – Non- Repat

183023

0.13

Bodies Corporate

7814430

5.53

TEESTA RETAIL PRIVATE LIMITED

3579056

2.53

Foreign Individuals

1362

0.00

Sub Total B3

31446514

22.24

B=B1+B2+B3

38002716

26.87

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of special alloy steel / stainless steel, billets, bars, rods, wire rods, EOT cranes, material handling equipment and other industrial machinery and comprehensive engineering services. (Registered Activity)

 

 

Products :

NIC Code No.

Product Description

27151

Manufacture of Alloy Steel bars, rods, structurals, rails

27153

Manufacture of Stainless Steel bars, rods, structurals, rails

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

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 :

Information declined by the management

 

 

Bankers :

Bank Name

NKGSB Company Operative Bank Limited

Branch

Unit No. 1, Trellis, Ground Floor, L.B.S. Marg, Opposite Asha Petrol Pump, Kurla (West), Mumbai – 400070, Maharashtra, India

Person Name (With Designation)

--

Contact Number

--

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)

Long-term Borrowings

 

 

Term Loans :

 

 

- from Banks

1689.500

2402.700

- from Others

1609.400

1954.900

Short-term borrowings

 

 

Working Capital Loans from Banks

6400.700

6065.600

Total

9699.600

10423.200

 

Auditors :

 

Name :

Haribhakti and Company LLP

Chartered Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries:
  • Mukand Global Finance Limited
  • Mukand International Limited (MIL)
  • Vidyavihar Containers Limited (VCL),
  • Mukand International FZE (MIFZE),
  • Mukand Sumi Metal Processing Limited (MSMPL),
  • Mukand Alloy Steels Private Limited
  • Mukand Vijayanagar Steels Limited, w.e.f. 30.12.2016,
  • Whiteleaf Heavy Machinery Private Limited, w.e.f. 25.3.2017,
  • Technosys Industrial Machinery Private Limited, w.e.f. 25.3.2017.

 

 

Other related parties where control exists :
  • Mukand Engineers Limited (MEL)
  • Bombay Forgings Limited (BFL)
  • Stainless India Limited (SIL)
  • Hospet Steels Limited (HSL)

 

 

Joint Ventures :

Mukand Vini Mineral Limited (MVML)

 

 

Other related parties where significant influence exists or where the related party has significant influence on the Company :
  • Kalyani Mukand Limited
  • Jamnalal Sons Private Limited (JSPL),
  • Adonis Laboratories Private Limited

 

 

 

CAPITAL STRUCTURE

 

As on 24.07.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

153000000

Equity Shares

INR 10/- each

INR 1530.000 Million

7000000

Preference Shares

INR 10/- each

INR 70.000 Million

 

Total

 

INR 1600.000 Million

 

Issued, Subscribed & Paid-up Capital : INR 1470.322 Million

 

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

153000000

Equity Shares

INR 10/- each

INR 1530.000 Million

7000000

Preference Shares

INR 10/- each

INR 70.000 Million

 

Total

 

INR 1600.000 Million

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

146273934*

Equity Shares

INR 10/- each

INR 1462.700 Million

5626320

0.01% Cumulative Redeemable Preference Shares

INR 10/- each

INR 56.300 Million

 

Total

 

INR 1519.000 Million

 

* Note: Includes 28031 Equity Shares which have been kept in abeyance by the Stock Exchange Authorities.

 

Subscribed and Paid-up Capital

No. of Shares

Type

Value

Amount

 

 

 

 

141405861

Equity Shares

INR 10/- each

INR 1414.100 Million

5626320

0.01% Cumulative Redeemable Preference Shares

INR 10/- each

INR 56.300 Million

 

Add: Forfeited shares (amounts originally paid up)

 

INR 0.100 Million

 

Total

 

INR 1470.500 Million

 

Reconciliation of the number of shares outstanding at the beginning and the end of the reporting period:

 

Particulars

31.03.2017

Equity Shares

Nos. in crore

INR in Million

At the beginning of the year

14.14

141.400

Add : issued during the period

--

--

Less : bought back during the year

--

--

Outstanding at the end of the period

14.14

141.400

 

Particulars

31.03.2017

Preference shares (CRPS)

Nos. in crore

INR in Million

At the beginning of the period

0.56

56.300

Add : issued during the period

--

--

Less : bought back during the year

--

--

Outstanding at the end of the period

0.56

56.300

 

Terms / rights attached to equity shares

 

The Company has only one class of equity share having a par value of INR 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

 

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

 

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

Terms of redemption of CRPS

 

Pursuant to the order of the Hon’ble High Court of Judicature at Bombay dated October 14, 2003, the Company had cancelled 22½ equity shares issued and unallotted and reduced 20% of the then outstanding equity shares amounting to 5626320 equity shares. In lieu of cancelled shares, the company has issued 5626320 0.01% Cumulative Redeemable Preference Shares of INR 10/- each entitled for cumulative Preference dividend of 0.01% p.a. and redeemable in five equal annual installments starting from September. 2019. In the event of liquidation of the company before redemption, the holders of CRPS will have priority over equity shares in the payment of dividend and repayment of capital.

 

The Company does not have any holding company.

 

There are no bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

 

Details of shareholders holding more than 5% shares in the company

 

Equity Shares of INR 10/- each fully paid

31.03.2017

 

Number of Shares

% holding

Jamnalal Sons Private Limited.

26293322

18.59

Life Insurance Corporation of India

7228076

5.11

Bajaj Holdings and Investments Limited

8113564

5.74

Baroda Industries Private Limited.

15726616

11.12

Niraj Bajaj

11786730

8.34

Rajesh V. Shah

7200842

5.09

CRPS of INR 10/- each fully paid

 

 

Life Insurance Corporation of India

595545

10.58

Jamnalal Sons Private Limited.

474064

8.43

 

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

 

There are no shares reserved for issue under options and contracts / commitments for sale of shares/disinvestment.

 

There are no unpaid calls from any Director and officer.

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1470.500

1470.500

1470.500

(b) Reserves & Surplus

2778.300

19710.200

19737.900

(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)

4248.800

21180.700

21208.400

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

16474.100

15818.700

15015.800

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

40.000

40.000

40.000

(d) long-term provisions

394.600

434.000

393.100

Total Non-current Liabilities (3)

16908.700

16292.700

15448.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

9487.000

8820.600

8293.500

(b) Trade payables

8642.000

8377.900

8682.600

(c) Other current liabilities

5316.500

4838.200

4275.600

(d) Short-term provisions

68.800

56.400

58.100

Total Current Liabilities (4)

23514.300

22093.100

21309.800

 

 

 

 

TOTAL

44671.800

59566.500

57967.100

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

7127.000

24067.300

24474.100

(ii) Intangible Assets

1.600

1.000

1.500

(iii) Capital work-in-progress

331.300

292.000

263.700

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

2502.100

2508.700

2510.000

(c) Deferred tax assets (net)

121.000

448.000

453.200

(d)  Long-term Loan and Advances

1188.400

1163.900

1157.500

(e) Other Non-current assets

323.800

479.000

482.800

Total Non-Current Assets

11595.200

28959.900

29342.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

16184.200

14622.500

14235.800

(c) Trade receivables

10726.000

11161.800

9865.000

(d) Cash and cash equivalents

742.600

652.600

798.700

(e) Short-term loans and advances

1965.700

2046.900

1881.800

(f) Other current assets

3458.100

2122.800

1843.000

Total Current Assets

33076.600

30606.600

28624.300

 

 

 

 

TOTAL

44671.800

59566.500

57967.100

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

26974.100

27309.800

28190.900

 

Other Income

280.500

215.700

200.800

 

TOTAL

27254.600

27525.500

28391.700

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

11534.500

12039.200

13842.400

 

Purchases of Stock-in-Trade

0.000

8.800

15.800

 

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

(779.700)

(710.800)

(1373.200)

 

Employees benefits expense

1714.200

1712.600

1590.100

 

Other expenses

11239.400

10948.800

10784.700

 

Expenditure transferred to Capital Accounts / Capital Work-in-Progress

(27.200)

(23.500)

(50.500)

 

Exceptional Items (net)

0.000

0.000

150.600

 

TOTAL

23681.200

23975.100

24959.900

 

 

 

 

 

 

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

3573.400

3550.400

3431.800

 

 

 

 

 

Less

FINANCIAL EXPENSES

2799.500

2789.100

2660.800

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

773.900

761.300

771.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

709.600

739.900

749.700

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

64.300

21.400

21.300

 

 

 

 

 

Less

TAX

482.400

5.200

5.500

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(418.100)

16.200

15.800

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2177.700)

(2193.900)

(2209.700)

 

 

 

 

 

 

Balance Carried to the B/S

(2595.800)

(2177.700)

(2193.900)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1510.800

1048.500

1280.900

 

Dividend

14.200

2.000

1.900

 

Income from Engineering Contracts

3.800

0.700

0.300

 

Freight & Insurance (included in the sale value)

21.800

17.900

0.000

 

Others

0.400

0.000

1.900

 

TOTAL EARNINGS

1551.000

1069.100

1285.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

6987.900

5709.300

5079.700

 

Components and Stores parts

556.200

755.000

627.200

 

Capital Goods

72.000

50.100

37.200

 

TOTAL IMPORTS

7616.100

6514.400

5744.100

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

 

Basic and diluted earnings per share (in INR)

(2.96)

0.11

0.11

 

Basic and diluted earnings per share excluding Exceptional Items (in INR)

(2.96)

0.11

1.18

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

2833.700

2697.000

2271.200

Cash generated from operations

1601.500

1250.300

(57.700)

Net cash flow from operating activity

1549.300

1172.000

117.600

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2017

30.09.2017

31.12.2017

Unaudited

1st Quarter

2nd Quarter

2rd Quarter

Net Sales

8651.300

8001.300

7521.700

Total Expenditure

7974.100

7414.200

7521.700

PBIDT (Excl OI)

677.200

587.100

376.900

Other Income

425.700

451.600

32.100

Operating Profit

1102.900

1038.700

409.000

Interest

1104.400

1116.100

672.900

Exceptional Items

NA

NA

(90.500)

PBDT

(1.500)

(77.400)

(354.400)

Depreciation

167.300

170.000

137.200

Profit Before Tax

(168.800)

(247.400)

(491.600)

Tax

(38.700)

(62.500)

(150.500)

Provisions and contingencies

NA

NA

NA

Profit After Tax

(130.100)

(184.900)

(341.100)

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

(130.100)

(184.900)

(341.100)

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

145.14

149.18

127.73

 

 

 

 

Account Receivables Turnover

( Income / Sundry Debtors)

2.51

2.45

2.86

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

273.47

253.81

228.68

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.22

0.24

0.24

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.48

0.15

0.14

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.96

0.68

0.67

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

6.78

1.29

1.21

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

5.53

1.04

1.00

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

1.76

1.15

1.17

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

1.28

1.27

1.29

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

[(PAT / Sales) * 100]

%

(1.55)

0.06

0.06

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

(0.94)

0.03

0.03

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

(9.84)

0.08

0.07

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.41

1.39

1.34

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.72

0.72

0.68

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.10

0.36

0.37

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

19.58

18.59

17.40

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.41

1.39

1.34

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

 

 

STOCK PRICES

 

Face Value

INR 10.00/-

Market Value

INR 76.00/-

 

 

 

FINANCIAL ANALYSIS

[all figures are in 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

1470.500

1470.500

1470.500

Reserves & Surplus

19737.900

19710.200

2778.300

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

21208.400

21180.700

4248.800

 

 

 

 

long-term borrowings

15015.800

15818.700

16474.100

Short term borrowings

8293.500

8820.600

9487.000

Current Maturities of Long term debt

2271.200

2697.000

2833.700

Total borrowings

25580.500

27336.300

28794.800

Debt/Equity ratio

1.206

1.291

6.777

 

 

 

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

28190.900

27309.800

26974.100

 

 

(3.125)

(1.229)

 

 

 

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

28190.900

27309.800

26974.100

Profit/ (Loss)

15.800

16.200

(418.100)

 

0.06%

0.06%

(1.55%)

 

 

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

1470.500

1470.500

(b) Reserves & Surplus

 

322.200

17142.500

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Minority Interest

 

1152.000

1117.000

Total Shareholders’ Funds (1) + (2)

 

2944.700

19730.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

17082.100

16365.400

(b) Deferred tax liabilities (Net)

 

75.700

40.400

(c) Other long term liabilities

 

62.600

40.000

(d) long-term provisions

 

401.000

439.100

Total Non-current Liabilities (3)

 

17621.400

16884.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

10073.900

9398.800

(b) Trade payables

 

8387.700

8540.700

(c) Other current liabilities

 

6901.800

6356.700

(d) Short-term provisions

 

83.000

60.200

Total Current Liabilities (4)

 

25446.400

24356.400

 

 

 

 

TOTAL

 

46012.500

60971.300

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

7337.400

24278.500

(ii) Intangible Assets

 

10.200

10.000

(iii) Capital work-in-progress

 

333.300

308.800

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

334.900

358.700

(c) Deferred tax assets (net)

 

121.100

448.100

(d)  Long-term Loan and Advances

 

1352.400

1324.600

(e) Other Non-current assets

 

376.200

506.400

Total Non-Current Assets

 

9865.500

27235.100

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

16587.200

14965.700

(c) Trade receivables

 

10972.400

11637.300

(d) Cash and cash equivalents

 

936.300

955.700

(e) Short-term loans and advances

 

4058.500

3919.300

(f) Other current assets

 

3592.600

2258.200

Total Current Assets

 

36147.000

33736.200

 

 

 

 

TOTAL

 

46012.500

60971.300

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

28732.600

29525.300

 

Other Income

 

291.600

251.200

 

TOTAL

 

29024.200

29776.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

12812.900

13698.000

 

Purchases of Stock-in-Trade

 

(104.100)

48.600

 

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

 

(790.600)

(650.400)

 

Employees benefits expense

 

1733.600

1729.100

 

Other expenses

 

11444.400

11129.700

 

Expenditure transferred to Capital Accounts/ Capital Work-in-Progress

 

(27.200)

(23.500)

 

Exceptional items

 

0.000

128.600

 

TOTAL

 

25069.000

26060.100

 

 

 

 

 

Less

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

 

3955.200

3716.400

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

2954.700

2927.200

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

1000.500

789.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

738.000

770.200

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

262.500

19.000

 

 

 

 

 

Less

TAX

 

561.600

94.200

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

(299.100)

(75.200)

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

 

Basic and diluted earnings per share including Exceptional Items (in INR) 

 

(2.12)

(0.53)

 

Basic and diluted earnings per share excluding Exceptional Items (in INR)

 

(2.12)

0.38

 

 

LEGAL CASES

 

Bench:- Bombay

Presentation Date:- 12/01/2018

Lodging No. :

CHSWL/18/2018

Failing Date:-

12/01/2018

Reg. No.:-

CHSW/13/2018

Reg. Date:-

25/01/2018

 

Main Matter

Lodging No. :

WPL/3595/2015

 

Reg No.:-

WP/184/2016

 

Petitioner:-

 

MUKAND STAFF AND OFFICERS ASSOCIATION

Respondent:-

MUKAND LIMITED

Petn.Adv:-

K PRASANNA KUMAR (I12040)

District:-

MUMBAI

Bench:-

SINGLE

Category:-

CHAMBER SUMMONS (AMENDMENT)

Status:-

Pre-Admission

Stage:-

FOR PRODUCTION

Last Date:-

07/02/2018

Last Coram:-

HON'BLE SHRI JUSTICE A. K. MENON

 

 

Act. :

Industrial Dispute Act, 1947

 

 

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

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

GENERAL INFORMATION

 

Nature of industry

 

Manufacture of special alloy steel / stainless steel, billets, bars, rods, wire rods, EOT cranes, material handling equipment and other industrial machinery and comprehensive engineering services.

 

Performance:

 

The turnover was marginally lower by 1% at INR 27250.000 Million. As compared to INR 27530.000 Million in the previous year on account of effect of demonetization in the month of November 2016 and fierce competition arising from surplus capacity in the Steel Sector. The steep hike in raw material prices was partly compensated by raising sale price of steel products during part of the year. Various productivity improvement and cost reduction \ measures helped the Company to maintain its margin on sale of steel products. The turnover of Industrial Machinery Division was however higher at INR 1690.000 Million as compared to INR 1330.000 Million in the previous year on account of execution of available orders on hand at the commencement of the year. Interest cost however went up on account of requirement of additional working capital.

 

The performance of the Company is elaborated in the Management Discussion and Analysis annexed to this report.

 

Management Discussion and Analysis

 

Global economy

 

The global economic activity has begun to pick up with slow but steady recovery in investment, manufacturing and trade. World growth is expected to rise from 3.1% in 2016 to 3.5% in 2017 and further move up to 3.6% in 2018 according to the world economic output report by IMF, released in April 2017.

 

According to the IMF, emerging markets and developing economies now account for more than 75% of global growth in output and consumption, almost double the share of what it was just two decades ago. As these economies have integrated into the global economy, terms of trade, external demand, and, in particular, external financial conditions have become increasingly influential determinants of their medium term growth.

 

Indian economy

 

The Indian economy has recorded a remarkable growth in recent years, helped by positive policy actions by the Government, normal monsoon, low oil prices, robust consumer and investor confidence all that helped improve external current account and fiscal positions.

 

The Government has made significant progress on important economic reforms which will support strong and sustainable growth, going forward. The GST, once fully implemented, is expected to help raise India’s medium term growth to above 8% as it will enhance the efficiency of the supply chain.

 

The Dollar remained strong against the Rupee during most of part of the year there by making input prices more expensive until the last quarter of FY 2017, when the Dollar weakened a bit.

 

India’s overall outlook looks positive although the GDP Growth is estimated to come down to 6.6% in FY 2016/17 due to the temporary disruptions primarily in private consumption caused by cash shortages arising out of demonetization but it is expected to rebound to 7.2% in FY 2017/18.

 

Steel economy

 

The steel industry, as mentioned earlier, is an important constituent in the manufacturing sector. India is the 3rd largest producer of steel in the world with a production of 95.8 million tons in 2016. The largest producer, China alone has an output of 800 million tons per year, which is almost 50% of the total global output of steel.

 

India’s per capita steel consumption of 61 kg is far below the global consumption average of 208 kg. The Government of India plans to embark on an ambitious plan to increase the per capita steel consumption to 160 kg by the year 2030. To achieve this ambitious target the Government will have to increase its expenditure in a variety of steel consuming sectors such as infrastructure, railways, defence, shipbuilding, and automobile thereby resulting in a significant increase in demand for steel in the country.

 

 

COMPANY’S FINANCIAL PERFORMANCE

 

The gross revenue from operations in the year has marginally declined as compared to the previous year mainly due to the reduction in selling prices as there was an increase in sales volume by approximately 10%.

 

The EBITDA for the year has been maintained inspite of decrease in selling prices and low demand as Company achieved reduction in cost. The Industrial Machinery Division also did not perform better during the year due to lower margin resulting from lack of demand and fierece competition due to excess capacity.

 

The Profit for the period was affected adversely due to Tax adjustments for lapsing of MAT entitlement credit and lapsing of carried-forward business losses, for which, the credit was taken in the earlier years.

 

Awards

 

The Ginigera Plant was awarded the Ispat Suraksha Puraskar 2017 for no fatal accidents in the last two years. This award is instituted by a joint committee on Safety, Health and Environment and managed by SAIL.

 

Company wide TPM activities are in full swing. The Kaizen teams from the Dighe Plant won three gold and one silver award at the Quality Competition 2016 organized by Quality Circle Forum of India – Mumbai chapter. At the annual convention of National Council of Quality Circles, Mukand Kaizen teams won Par Excellence and Excellence awards.

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Fixed Deposits

996.700

301.100

Long term loans from Companies

12178.500

11160.000

Short-term borrowings

 

 

Short Term Loans from Companies

3086.300

2755.000

Total

16261.500

14216.100

 

 

INDEX OF CHARGES

 

Charges Registered

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Amount

Address

1

G75162008

100150312

NKGSB CO. OP. BANK LTD.

08/01/2018

-

150000000.0

UNIT NO. 1, TRELLIS, GROUND FLOOR,L.B.S. MARG, OPP. ASHA PETROL PUMP, KURLA (W) MUMBAI MAHARASHTRA 400070 INDIA

2

G59545533

100130494

BAJAJ FINANCE LIMITED

23/10/2017

-

250000000.0

AKURDI PUNE MAHARASHTRA 411035 INDIA

3

G55013221

100125576

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

22/09/2017

-

1000000000.0

RAMON HOUSE 169 BACKBAY RECLAMATIONH T PAREKH MARG MUMBAI MAHARASHTRA 400020 INDIA

4

G39225032

100085587

SREI EQUIPMENT FINANCE LIMITED

27/02/2017

-

56050000.0

'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA WEST BENGAL 700046 INDIA

5

G36913861

100079663

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

15/02/2017

-

750000000.0

RAMON HOUSE 169BACKBAY RECLAMATIONH T PAREKH MARG MUMBAI MAHARASHTRA 400020 INDIA

6

G36914091

100079665

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

15/02/2017

-

750000000.0

RAMON HOUSE 169BACKBAY RECLAMATIONH T PAREKH MARG MUMBAI MAHARASHTRA 400020 INDIA

7

G23422397

100061231

BAJAJ FINANCE LIMITED

27/10/2016

-

250000000.0

AKURDI PUNE MAHARASHTRA 411035 INDIA

8

G00944272

100017882

NKGSB CO. OP. BANK LTD.

23/03/2016

-

300000000.0

UNIT NO. 1, TRELLIS, GROUND FLOOR,L.B.S. MARG, OPP. ASHA PETROL PUMP, KURLA (W) MUMBAI MAHARASHTRA 400070 INDIA

9

C54683388

10571450

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

13/05/2015

-

1100000000.0

RAMON HOUSE 169BACKBAY RECLAMATIONH T PAREKH MARG MUMBAI MAHARASHTRA 400020 INDIA

10

C45618576

10549771

DENA BANK

24/01/2015

24/01/2015

500000000.0

C-10, G-Block, Bandra Kurla Complex Bandra (East), Mumbai Mumbai MAHARASHTRA 400051 INDIA

 

 

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

 

        (INR In Million)

Particulars

Quarter Ended

 

Nine Months  Ended

 

31.12.2017

(Unaudited)

30.09.2017

(Unaudited)

31.12.2017

(Unaudited)

Income from Operations

 

 

 

Revenue from Operations

7898.600

7380.000

22862.700

Interest Income

29.200

55.100

152.800

Other Operating Income

2.900

19.300

25.100

Total Income from Operations (Net)

7930.700

7454.400

23040.600

Expenses

 

 

 

Cost of Materials Consumed

4895.000

3903.600

13270.800

Purchases of Stock-in-Trade

0.000

0.000

0.000

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

(632.100)

137.400

(1223.700)

Excise Duty

0.000

0.000

331.100

Employees benefits expense

470.100

431.900

1344.900

Finance Costs

672.900

656.200

1978.900

Depreciation and amortization expense

137.200

136.400

408.200

Other expenses

2790.300

2488.600

7924.600

Expenditure transferred to Capital Account/ Capital Work-in-Progress

(1.600)

(15.200)

(59.800)

Total Expenses

8331.800

7738.900

23975.000

 

 

 

 

Profit /(Loss) before exceptional items and tax

(401.100)

(284.500)

(934.400)

Exceptional Items

(90.500)

0.000

(90.500)

Profit /(Loss) before tax

(491.600)

(284.500)

(1024.900)

Tax Expense

 

 

 

-Current Tax

0.200

0.000

0.200

-Deferred Tax

150.300

86.000

308.900

Total Tax

150.500

86.000

309.100

Profit /(Loss) for the period

(341.100)

(198.500)

(715.800)

Other Comprehensive Income

 

 

 

-Items that will not be reclassified to profit or loss-Actuarial Gain on Employee defined benefit funds

1.000

1.000

3.000

Less: Deferred tax on above

(0.300)

(0.300)

(0.900)

Net

0.700

0.700

2.100

Total Comprehensive Income

(340.400)

(197.800)

(713.700)

Earnings per share (before/after extraordinary items)

 

 

 

-Basic & Diluted EPS (IN INR)

(2.41)

(1.40)

(5.06)

 

 

SEGMENT WISE REVENUE

        (INR In Million)

Particulars

Quarter Ended

 

Nine Months  Ended

 

31.12.2017

(Unaudited)

30.09.2017

(Unaudited)

31.12.2017

(Unaudited)

Segment revenue

 

 

 

Specialty Steel

7741.700

7255.200

22338.600

Industrial Machinery and Engineering Contracts

158.900

141.100

592.000

Sub Total

7900.600

7396.300

22930.600

Less: Inter segment revenue

(2.000)

(16.300)

(67.900)

Total Segment Revenue

7898.600

7380.000

22862.700

 

 

 

 

SEGMENT RESULTS

 

 

 

Specialty Steel

366.400

431.600

1187.000

Industrial Machinery and Engineering Contracts

(96.200)

(71.300)

(183.200)

Less: Inter segment margin

(0.100)

(2.600)

(10.800)

Total Segment Result

270.100

357.700

993.000

Add/ (Less) :

 

 

 

Other net un – allocable :

 

 

 

Interest Income

29.200

55.100

152.800

Income

2.900

19.300

25.100

Expenditure

(120.900)

(60.400)

(216.900)

Other net u-allocable (expenditure)/ income

(88.800)

14.000

(39.000)

Profit/ (Loss) before finance costs

181.300

371.700

954.000

Less: Finance costs

672.900

656.200

1978.900

Profit/ (Loss) before tax

(491.600)

(284.500)

(1024.900)

 

 

 

 

SEGMENT ASSETS/ LIABILITIES

 

 

 

Segment Assets

 

 

 

Specialty Steel

20496.200

20421.100

20496.200

Industrial Machinery and Engineering Contracts

3435.300

3347.700

3435.300

Corporate - Unallocable

8881.600

8513.300

8881.600

 

32813.100

32282.100

32813.100

Segment Liabilities

 

 

 

Specialty Steel

10513.300

10191.900

10513.300

Industrial Machinery and Engineering Contracts

598.100

554.000

598.100

Corporate - Unallocable

18963.400

18515.000

18963.400

 

30074.800

29260.900

30074.800

Total Net Capital Employed

2738.300

3021.200

2738.300

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Contingent Liabilities not provided for :

 

 

Disputed matters in appeal/contested in respect of:

 

 

- Income Tax *

199.600

199.600

- Excise Duty, Customs Duty etc.

85.600

45.500

- Sales Tax, Works Contract Tax etc. **

3.300

49.000

- Other matters

18.500

2.400

* included in this amount (not provided in the Accounts) is the liability under Sec 115JB of the Income Tax Act, 1961 for Assessment Year 2005-06 as the Company’s appeal is pending disposal. Company places reliance on certain judicial pronouncements and has also obtained a legal opinion on the matter.

 

** In the matter of certain ex-parte assessments completed by Commercial Tax Officer in the State of Uttar Pradesh, Company is advised that liability, if any, that may arise will be determined after the matter is remanded to the Assessing Officer and on completion of reassessment proceedings and therefore, the same is not included herein.

Claims against the Company not acknowledged as debt as these are disputed and pending disposal at various fora.

 

The Company has taken legal and other steps to protect its interest in respect of these matters, which is based on legal advice and/or precedents in its own/other cases. It is not possible to make any further determination of the liability which may arise in these matters.

210.600

139.600

Guarantees and Counter guarantees given by the Company on behalf of :-

 

- Other Companies

1234.000

1248.800

Bonds / Undertakings given by the Company under concessional duty/ exemption to Customs / Excise Authorities (Net of redemption applied for)

6.600

6.600

Arrears of dividend on preference shares for FY 2016-17 INR 5627/-, FY 2015-16 INR 5,627/- and FY 2014-15 INR 5627/- in view of ammendment to section 123 of the Companies Act, 2013.

 

Demand for Annual Bonus for the financial years 1995-96 to 2006-07 by Staff and Officers’ Association is pending at different stages in proceedings under The Industrial Disputes Act, 1947. Bulk of these employees are statutorily not covered by The Payment of Bonus Act, 1965 and many of the employees are also not covered by The Industrial Disputes Act, 1947. Liability arising there from cannot therefore be determined at present.

 

Government of Maharashtra had served a Demand Notice on the Company for payment of electricity duty for power generated during the period 01.04.2000 to 30.04.2005 and penal interest thereon in Company’s Captive Power Plant amounting to INR 142.700 Million. The Writ Petition filed by the Company was disposed by the Hon’ble Bombay High Court on 7th November, 2009 quashing the said Demand Notice. Government of Maharashtra has however, filed an appeal in the Supreme Court of India against the aforesaid judgment of High Court.

 

There have been delays in payment of tax deducted at source in earlier years and also in FY2016-17. Interest payable on delays has been accounted for in respect of cases where appropriate orders have been received from Income Tax authorities or at the time of Filing the Quarterly TDS Returns.

 

A claim towards difference in price of calibrated iron ore for the period 1st April, 2006 to 28th February, 2007 amounting to Rs.33.07 crore has been raised by a supplier in March 2007. The Company has been legally advised that the supplier cannot seek this price revision under a concluded agreement and hence no provision is made in the Accounts for the same. The issue along with method of review and re-fixing of price of calibrated iron ore effective on 1st of April each year in terms of agreement is referred to an arbitral tribunal whose award was pronounced on 28th February 2014. In terms of the said award, the supplier is directed to re-compute amount payable by the Company. Pending receipt of the revised claim, the final liability arising there from is not ascertainable. Moreover, the said supplier has also unilaterally increased the price of calibrated iron ore w.e.f. 1st April, 2007 and thereafter w.e.f. 1st April, every year. This issue too was settled by the aforesaid arbitral tribunal. In terms of the said award, the Company is required to submit certain details to the supplier for recomputing

its claim in terms of the award. However, pending such determination of final price, the supplier has raised invoices at an ad-hoc interim mutually agreed price on the marketing contractor who in turn, has billed the Company at the same price and which liability, has been fully accounted for. An appeal has been preferred for challenging the said arbitration award.

 

 

 

FIXED ASSETS

 

  • Freehold Land
  • Leasehold Land
  • Railway Siding
  • Buildings and Roads
  • Plant and Machinery
  • Furniture and Fixtures
  • Office Machinery
  • Vehicles

 

 

WEBSITE DETAILS

 

NEWS/ PRESS RELEASES

 

MUKAND, MOLD-TEK TECHNOLOGIES GAINS 5-7% ON ROBUST Q2 NUMBERS

 

16.11.2017

 

Mukand has minimised its losses as it has posted Q2 net loss at INR 185.000 Million against loss of INR 202.000 Million.

 

Shares of Mukand and Mold-Tek Technologies 5-7 percent intraday Thursday on strong Q2 numbers.

 

Mold-Tek Technologies has witnessed 200 percent jump in its Q2 consolidated net profit at INR 21.000 Million versus INR 7.000 Million in a year ago period.

 

Revenue has increased 38.3 percent at INR 204.000 Million against INR 148.000 Million.

 

Mukand has minimised its losses as it has posted Q2 net loss at INR 185.000 Million against loss of INR 202.000 Million.

 

Revenue jumped 24.1 percent to INR 8001.000 Million versus INR 6450.000 Million.

 

The operating profit (EBITDA) was down 4.3 percent at INR 587.000 Million and EBITDA margin was down 220 bps at 7.3 percent.

 

At 13:22 hrs Mold-Tek Technologies was quoting at INR 57.30, up 5.14 percent and Mukand was quoting at INR 90.70, up 1 percent on the BSE.

 

JAPAN'S SUMITOMO PARTNERS WITH MUKAND TO SET UP STEEL ROLLING MILL IN KARNATAKA

 

30.03.2017

 

MUMBAI: Specialty steel maker Mukand Limited and Sumitomo Corp of Japan have signed an agreement to form a joint venture that will set up a rolling mill in Karnataka. 

 

The JV, Mukand Alloy Steel Private Limited (MASPL), will set up a steel rolling mill unit at Hospet in Karnataka with an initial capacity of 375000 tonnes per annum.

 

Mukand will hold 51 per cent stake in the JV and Sumitomo 49 per cent equity with an enterprise value of INR 28200.000 Million, a statement said here.

 

The new company will be engaged in the rolling and finishing of Mukand's principal business of alloy steel long products. It will exclusively procure the required alloy steel billets and blooms from Mukand's steel making facility at Hospet, it said. 

 

The agreement was signed at Kyoto, Japan today in the presence of Rajesh Shah, Co Chairman and Managing Director of Mukand and Kuniharu Nakamura, President and CEO of Sumitomo.

 

MASPL will initially invest INR 5500.000 Million in the proposed plant at Hospet. 

 

The JV will combine Mukand's manufacturing and engineering capabilities and Sumitomo's marketing management skills and know-how to cater to a growing automobile market globally, the statement said. 

 

Sumitomo is a leading trading and business investment company having a presence in 66 countries. Apart from various other businesses, Sumitomo is engaged in the supply of steel products that are supplied to automakers as materials for a broad range of auto parts. 

 

CCI APPROVES SUMITOMO CORP'S STAKE ACQUISITION IN MASPL

 

20.06.2017

 

The joint venture business would be carried out through MASPL, according to the notice.

 

The Competition Commission has approved Sumitomo Corporation's purchase of 49 percent stake in proposed joint venture Mukand Alloy Steels Private Limited (MASPL).

 

MASPL would be a joint venture between India's Mukand Limited and Sumitomo Corporation of Japan.

 

In a tweet, the Competition Commission of India (CCI) said that it has approved "acquisition of 49 percent equity shares of Mukand Alloy Steels Private Limited by Sumitomo Corporation".

 

As per the notice submitted to the fair trade regulator, Mukand Limited and Sumitomo propose to form a joint venture to engage in the business of manufacturing, marketing, selling and distribution of hot rolled wire rods and bars by rolling and finishing of blooms and billets.

 

The joint venture business would be carried out through MASPL, according to the notice.

 

Sumitomo is a trading company and its business activities include sales of a variety of products and services in Japan, import and export, and domestic and international business investment.

 

Mukand primarily operates in the steel and industrial machinery sectors and produces, among others, bars and wire rods.

 

MUKAND LIMITED SIGNS JOINT VENTURE WITH JAPAN'S SUMITOMO CORP

 

31.03.2017

 

Steel company Mukand Limited has entered into a joint venture with Japan's Sumitomo Corporation, for the rolling and finishing of alloy steel products. The shareholder agreement between the two companies was signed on 30th March. The joint venture, the companies said, would bring together Mukand's manufacturing and production skills, and Sumitomo's global reach and marketing strengths. Sumitomo is a Fortune 500 company, with 108 locations across 66 countries. 

 

Mukand will own 51% of the joint venture, with the rest owned by Sumitomo. Mukand's alloy steel is used in automobile and auto part production, particularly in steering, fuel injection and transmission components. The company's share price has hit a new 52 week high today on the news.

 

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 63.90

UK Pound

1

INR 90.31

Euro

1

INR 80.16

 

 

INFORMATION DETAILS

 

Information Gathered by :

PNM

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SUD

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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.