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MIRA INFORM REPORT
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Report No. : |
483699 |
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Report Date : |
03.01.2018 |
IDENTIFICATION DETAILS
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Name : |
ELECTRO STEEL CASTINGS LIMITED |
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Registered Office
: |
Rathod Colony, Rajgangpur, Sundergarh-770017, Orissa |
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Tel. No.: |
91-33-22839990 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
26.11.1955 |
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Com. Reg. No.: |
15-000310 |
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Capital
Investment / Paid-up Capital : |
INR 356.955 Million |
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CIN No.: [Company Identification
No.] |
L27310OR1955PLC000310 |
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IEC No.: |
0288022319 |
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TIN No.: |
19200117048 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
CALE01711D |
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GSTIN : |
Not Divulged |
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PAN No.: [Permanent Account No.] |
AAACE4975B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the manufacture and supply of Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast iron (CI) Pipes as its core business and produces and supplies Pig Iron in the process. It also produces Metallurgic Coke, Sinter and Power for captive consumption. (Registered activity) |
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No. of Employees
: |
1548 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Electro Steel Castings Limited was incorporated in the year 1955. It
is a manufacturer of Ductile Iron Fittings (DIF) AND Cast Iron (CI) Pipes. For the financial year 2017, the company has reported decline in its
revenue as compared to previous year but has managed to maintain average
profit margin of 4.21%. The healthy financial profile of the company is marked by strong
networth base along with strong debt coverage indicators due to low debt
balance sheet profile. The rating takes into consideration the subject’s long track record of
business operations along with extensive experience of its promoters. The company has its share price trading at around INR 37.75 against
the Face Value (FV) of INR. 01 on BSE as on 28th December, 2017. However, rating strength are partially offset by company’s decline in
financials for the second consecutive year, both in the revenues and net
profits, delays in compensation towards deallocation of coking coal block and
currency risk on foreign exposure. Business is active. Payments are reported to be slow and delayed. In view of aforesaid, the company can be considered for business
dealings at usual trade terms and conditions.
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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India |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low
Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High
Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
BRICKWORKS |
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Rating |
NON CONVERTIBLE DEBENTURE = A+ |
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Rating Explanation |
Adequate degree of safety and low credit risk. |
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Date |
23.03.2017 |
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 03.01.2018
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 BY
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Name : |
Mr. J.P Singh |
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Designation : |
Not Divulged |
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Contact No.: |
91-66-24220332 |
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Date : |
29.12.2017 |
MANAGEMENT NON-COOPERATIVE: Tel. No.:
91-33-22839990 / 71034400
LOCATIONS
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Registered Office : |
Rathod Colony, Rajgangpur, Sundergarh – 770017, Orissa, India |
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Tel. No.: |
91-66-24220332/ 9 / 287047 / 207008 |
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Fax No.: |
91-6622-481803 |
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E-Mail : |
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Website : |
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Corporate Office / Head Office : |
G. K. Tower, 19, Camac Street, Kolkata – 700017, West Bengal, India |
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Tel. No.: |
91-33-22839990/71034400 |
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Fax No.: |
91-33-22894336 (Directors) 91-33-22894337 (Sales) 91-33-22894338 (Export) 91-33-22894339 (Finance) |
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E-Mail : |
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Website : |
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Factory 1 : |
30, B.T. Road, Sukchar, Khardah, 24-Paraganas (North) – 743179, West
Bengal, India |
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Factory 2 : |
12/72, G.N.T. Road, Gummodipoondi Taluk, P.O. Elavur, District. MGR,
Chengal – 601211, Tamilnadu, India |
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Tel. No.: |
91-44-27991118 / 27991126 |
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Fax No.: |
91-44-27991116 |
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Factory 3 : |
Haldia, Kasberia, P.O. Khanjan Chawk, Haldia, Midnapore (East), West
Bengal India |
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Tel. No.: |
91-3224-277394 / 720 / 721 |
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Fax No.: |
91-3224-278107 |
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Factory 4 : |
Parbatpur Coal Mine, P.O. Batbinor, District: Bokaro – 827013, Jharkhand
India |
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Factory 5 : |
Bansberia Works, Saptagram Panchayat, P.O. Adconnagar, Chak Bansberia
– 712121, West Bengal, India |
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Branch Office 1 : |
148/150 (Old No.98/99), Luz Church Road,
Luz Church Road, Chennai – 600004, Tamilnadu, India |
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Branch Office 2 : |
B-47, Shiv Mahal Cannught Place, New Delhi – 110001, India |
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Branch Office 3 : |
B-707, Mahavir Icom, Plot No. 89/90, CBD Belapur, Navi Mumbai – 400614,
Maharashtra, India |
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Regional Offices : |
Located At: North Zone
South Zone
West Zone
East Zone :
Central Zone
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Overseas Offices : |
Located At:
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DIRECTORS
As on 31.03.2017
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Name : |
Mr. Umang Kejriwal |
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Designation : |
Managing Director |
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Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata-700019, West Bengal, India |
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Date of Appointment : |
15.02.1979 |
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DIN No.: |
00065173 |
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Name : |
Mr. Mayank Kejriwal |
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Designation : |
Managing Director |
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Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata-700019, West Bengal, India |
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Date of Appointment : |
15.02.1979 |
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DIN No.: |
00065980 |
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Name : |
Mr. Pradip Kumar Khaitan |
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Designation : |
Director |
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Address : |
B-103, Rai Enclave, 7/1A, Sunny Park, Kolkata-700019, West Bengal, India |
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Date of Appointment : |
25.08.1972 |
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DIN No.: |
00004821 |
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Name : |
Mrs. Shermadevi Yegnaswami Rajagopalan |
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Designation : |
Director |
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Address : |
Udayan, UD-08-1003, 1050/1, Survey Park, Kolkata-700075, West Bengal, India |
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Date of Appointment : |
22.01.2010 |
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DIN No.: |
00067000 |
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Name : |
Mr. Binod Kumar Khaitan |
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Designation : |
Director |
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Address : |
5, Queens Park, Kolkata-700019, West Bengal, India |
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Date of Appointment : |
20/11/1975 |
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DIN No.: |
00128502 |
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Name : |
Mr. Amrendra Prasad Verma |
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Designation : |
Director |
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Address : |
14C, Madhuban Gen J. C. Bhosle Marg, Mumbai – 400021, Maharashtra, India |
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Date of Appointment : |
22.12.2016 |
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DIN No.: |
00236108 |
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Name : |
Mr. Ram Krishna Agarwal |
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Designation : |
Director |
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Address : |
FD-226, Salt Lake, Sector- III, Kolkata-700091, West Bengal, India |
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Date of Appointment : |
30.07.2015 |
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DIN No.: |
00416964 |
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Name : |
Mr. Vyas Mitre Ralli |
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Designation : |
Director |
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Address : |
"Silver Spring" Flat-13B, Block-3, 5, JBS Halden Avenue, Kolkata-700105, West Bengal, India |
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Date of Appointment : |
21.12.2009 |
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DIN No.: |
02892446 |
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Name : |
Mr. Nityangi Kejriwal |
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Designation : |
Director |
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Address : |
Nav-Nikung, 13 Gurusaday Road, Ballygunge, Kolkata-700019, West Bengal, India |
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Date of Appointment : |
31.03.2015 |
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DIN No.: |
07129444 |
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Name : |
Mr. Uddhav Kejriwal |
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Designation : |
Whole-Time Director |
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Address : |
Nav-Nikunj, 13, Gurusaday Road, Kolkata.700019, West Bengal, India |
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Date of Appointment : |
16.06.2003 |
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DIN No.: |
00066077 |
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Name : |
Mr. Mahendra Kumar Jalan |
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Designation : |
Whole-Time Director |
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Address : |
Flat 6b, 3C, National Library Avenue, Alipur, Kolkata-700027, West Bengal, India |
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Date of Appointment : |
22.01.2010 |
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DIN No.: |
00311883 |
KEY EXECUTIVES
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Name : |
Mr. Brij Mohan Soni |
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Designation : |
Chief Financial Officer |
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Address : |
Flat No. 2F, 15, Motilal Nehru Road, Kolkata-700029, West Bengal, India |
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Date of Appointment : |
09.11.2015 |
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DIN No.: |
ALUPS0239G |
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Name : |
Subhra Giri Patnaik |
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Designation : |
Secretary |
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Address : |
2A, Block- C, Dream Park, 468 Dakshin Kumrakhali, Sonarpur Station Road, Kolkata-700103, West Bengal, India |
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Date of Appointment : |
01.08.2015 |
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DIN No.: |
AIUPP1384J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2016
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Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of shares |
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(A) Promoter & Promoter
Group |
189255072 |
53.02 |
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(B) Public |
167700250 |
46.98 |
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Grand Total |
356955322 |
100.00 |
Statement showing
shareholding pattern of the Promoter and Promoter Group
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Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
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A1) Indian |
0.00 |
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Individuals/Hindu
undivided Family |
40980703 |
11.48 |
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UMANG KEJRIWAL- TRUSTEE OF
SREEJI FAMILY BENEFIT TRUST |
17513527 |
4.91 |
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MAYANK KEJRIWAL- TRUSTEE OF SREEJI
FAMILY BENEFIT TRUST |
17513526 |
4.91 |
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MAYANK KEJRIWAL, AARTI
KEJRIWAL - TRUSTEE OF PRIYA MANJARI TRUST |
27000 |
0.01 |
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UDDHAV KEJRIWAL |
3229540 |
0.90 |
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UDDHAV KEJRIWAL, PALLAVI
KEJRIWAL- TRUSTEE OF SAMRIDDHI TRUST |
24500 |
0.01 |
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UDDHAV KEJRIWAL HUF |
1554550 |
0.44 |
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SHASHWAT KEJRIWAL |
773010 |
0.22 |
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PALLAVI KEJRIWAL |
187950 |
0.05 |
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SAMRIDDHI KEJRIWAL |
157100 |
0.04 |
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Any
Other (specify) |
148274369 |
41.54 |
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G. K. & SONS PRIVATE LTD |
36731833 |
10.29 |
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MURARI INVESTMENT &
TRADING COMPANY LTD. |
30053080 |
8.42 |
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ELECTROCAST SALES INDIA
LIMITED |
29899981 |
8.38 |
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G.K.INVESTMENTS LTD. |
21739560 |
6.09 |
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UTTAM COMMERCIAL COMPANY LTD. |
18590570 |
5.21 |
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MALAY COMMERCIAL ENTERPRISES
LTD. |
3748190 |
1.05 |
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SRI GOPAL INVESTMENTS VENTURES
LTD. |
3732885 |
1.05 |
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CUBBON MARKETING PVT LTD |
2500000 |
0.70 |
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QUINLINE DEALCOMM PRIVATE
LIMITED |
319962 |
0.09 |
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ESCAL FINANCE SERVICES LTD. |
250000 |
0.07 |
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ELLENBARRIE DEVELOPERS
PVT.LTD. |
213308 |
0.06 |
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GLOBAL EXPORTS LTD. |
200000 |
0.06 |
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GREENCHIP TREXIM PVT. LTD. |
165000 |
0.05 |
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CALCUTTA DIAGNOSTICS CENTRE
(P) LTD |
130000 |
0.04 |
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Sub
Total A1 |
189255072 |
53.02 |
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A2) Foreign |
0.00 |
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A=A1+A2 |
189255072 |
53.02 |
Statement showing shareholding
pattern of the Public shareholder
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Category &
Name of the Shareholders |
No. of fully
paid up equity shares held |
Shareholding %
calculated as per SCRR, 1957 As a % of (A+B+C2) |
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B1)
Institutions |
0 |
0.00 |
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Mutual
Funds/ |
3031051 |
0.85 |
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Foreign
Portfolio Investors |
4920633 |
1.38 |
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Financial
Institutions/ Banks |
739862 |
0.21 |
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Insurance
Companies |
23252093 |
6.51 |
|
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GENERAL INSURANCE CORPORATION
OF INDIA |
9600000 |
2.69 |
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UNITED INDIA INSURANCE COMPANY
LIMITED |
6579481 |
1.84 |
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LIFE INSURANCE CORPORATION OF
INDIA |
3793318 |
1.06 |
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Sub
Total B1 |
31943639 |
8.95 |
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B2)
Central Government/ State Government(s)/ President of India |
0 |
0.00 |
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B3)
Non-Institutions |
0 |
0.00 |
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Individual
share capital upto Rs. 2 Lacs |
64430607 |
18.05 |
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Individual
share capital in excess of Rs. 2 Lacs |
22711828 |
6.36 |
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S. Shyam |
4430337 |
1.24 |
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NBFCs
registered with RBI |
102669 |
0.03 |
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Any
Other (specify) |
48511507 |
13.59 |
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Bodies Corporate |
17962082 |
5.03 |
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Clearing Members |
1287667 |
0.36 |
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NRI – Repat |
840409 |
0.24 |
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NRI – Non- Repat |
819235 |
0.23 |
|
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Trusts |
121700 |
0.03 |
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Stemcor Metals Limited |
19243836 |
5.39 |
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PGS Invest Corp |
8236578 |
2.31 |
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Sub
Total B3 |
135756611 |
38.03 |
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B=B1+B2+B3 |
167700250 |
46.98 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the manufacture and supply of Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast iron (CI) Pipes as its core business and produces and supplies Pig Iron in the process. It also produces Metallurgic Coke, Sinter and Power for captive consumption. (Registered activity) |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
1548 (Approximately) |
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Bankers : |
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Facilities : |
Note: Long-term
Borrowings 11.75% Non Convertible Debentures (privately placed) is to be secured by first pari–passu charge on company's Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on March 7, 2017 and are redeemable in 20 equal quarterly instalments at the end of 5th quarter from the date of allotment. However, there is a Put and Call option available to the investor / issuer which can be exercised at the end of three years from the date of allotment and every 12 months thereafter. 12% Non Convertible Debentures (privately placed) is to be secured by second pari–passu charge on company's Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on March 7, 2017 and are redeemable in 16 equal quarterly instalments at the end of 9th quarter from the date of allotment. However, there is a Put and Call option available to the investor / issuer which can be exercised at the end of three years from the date of allotment and every 12 months thereafter. 11% Non Convertible Debentures (privately placed) are secured by second pari–passu charge on company's Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debentures were allotted on July 5, 2013 and are redeemable at par at the end of 5th year from the date of allotment. 10.75% Non Convertible Debentures (privately placed) were secured by first pari–passu charge on company's Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur and excluding furniture and fixture, vehicles and other intangible assets. These debentures were allotted on April 11, 2012 and have been fully redeemed during the year. 12.50% Non Convertible Debentures (privately placed) was secured by second pari–passu charge on company's Property, Plant and Equipment and other intangible assets (immovable and movable) including land and buildings both present and future other than assets located at Elavur. These debenture were fully reedemed during the year ended March 31, 2016. External Commercial Borrowings of USD 77.50 million was repayable in 3 annual instalments of 33.25% in July, 2013, 33.25% in July, 2014 and 33.50% in July, 2015. The outstanding as on March 31, 2017 is NIL (March 31, 2016: NIL and April 1, 2015 : INR 1622.526 Million). External Commercial Borrowings of USD 139.00 million is repayable in 12 semi annual instalments from August 29, 2015. The outstanding as on March 31, 2017 is INR 6129.149 Million (March 31, 2016: INR 7178.718 Million and April 1, 2015: INR 8686.805 Million). The interest rate ranges from 6M Libor + 400 to 500 basis points. External Commercial Borrowings is secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. FCNR Loan of USD 16.62 million is to be secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. FCNR Loan is repayable in 25 equal quarterly instalments starting from Dec, 2016. The interest rate ranges from 3M Libor + 275 to 325 basis points. The outstanding as on March 31, 2017 is INR 954.790 Million (March 31, 2016: INR 1053.372 Million and April 1, 2015: NIL). Rupee Term Loan of INR 500.000 Million from bank is to be secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 25 equal quarterly instalments starting from July, 2017. The interest rate ranges from 10.00% p.a to 11.00% p.a. The outstanding as on March 31, 2017 is INR 449.509 Million (March 31, 2016: NIL and April 1, 2015: NIL) Rupee Term Loan of INR 2000.000 Million from bank is secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. Term Loan is repayable in 28 quarterly instalments starting from June, 2015. The interest rate ranges from 12.50% p.a to 13.50% p.a. The outstanding as on March 31, 2017 is INR 1910.501 Million (March 31, 2016 : INR 1948.598 Million and April 1, 2015 : INR 1986.871 Million) Rupee Term Loan of INR 400.000 Million from bank is secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur and Vadgaon (Pune). Rupee Term Loan is repayable in 16 equal quarterly installments starting from Dec, 2015. The interest rate ranges from 10.50% p.a to 12.00% p.a. The outstanding as on March 31, 2017 is INR 245.677 Million (March 31, 2016 : INR 341.931 Million and April 1, 2015 : INR 400.000) Term Loan of INR 500.000 Million from a financial institution is secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. Term Loan is repayable in 24 equal quarterly installments starting from July, 2016. The interest rate ranges from 12.00% p.a to 13.00% p.a. The outstanding as on March 31, 2017 is INR 436.056 Million (March 31, 2016: INR 498.028 Million and April 1, 2015: INR 497.394 Million) Term Loan of INR 395.400 Million from a financial institution is to be secured by way of second pari–passu charge on all movable Property, Plant and Equipment and other intangible assets and Current Assets, both present and future of the Company. The interest rate ranges from 14.00% p.a to 14.50% p.a. The outstanding as on March 31, 2017 is Nil (March 31, 2016: INR 344.087 Million and April 1, 2015: INR 392.634 Million). The said loan has been fully repaid during the year. Term Loan of INR 1000.000 from a financial institution was secured by way of first pari–passu charge on all immovable and movable Property, Plant and Equipment and other intangible assets, both present and future of the Company other than assets located at Elavur. The outstanding as on March 31, 2017 is NIL (March 31, 2016: NIL and April 1, 2015: INR 235.151 Million). The said loan has been fully paid during the previous year. Term Loan of INR 410.000 Million from a financial institution is repayable in 16 quarterly instalments starting from June, 2018. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2017 is 410.000 (March 31, 2016 : NIL and April 1, 2015 : NIL) Term Loan of INR 330.000 Million from a financial institution is repayable in 16 quarterly instalments starting from March, 2018. The interest rate ranges from 11.00% p.a to 12.00 % p.a. The outstanding as on March 31, 2017 is INR 251.148 Million (March 31, 2016: NIL and April 1, 2015: NIL). Term Loan of INR 420.000 Million from a financial institution has been fully repaid during the year. The interest rate ranges from 11.50% p.a to 12.25% p.a. The outstanding as on March 31, 2017 is NIL (March 31, 2016: INR 420.000 Million and April 1, 2015: NIL). The outstanding balances disclosed in Note no. 22.1 to 22.4 are based on the amortised cost in accordance with Ind AS 109 "Financial Instruments" Short-term
borrowings Loans repayable on demand being Working Capital facilities from Banks (both fund based and non fund based) are secured by first pari passu charge by way of joint hypothecation of raw materials, finished goods, work in progress, consumable stores and spares, book debts/receivables and other current assets of the company both present and future. Fixed Deposit amounting to NIL (March 31, 2016: NIL and April 1, 2015: INR 300.000 Million) are pledged with banks for availing working capital facilities. |
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
14, Government Place East,
Kolkata-700069, West Bengal, India |
|
Tel. No : |
91-33-22481111/1507/40400000 |
|
Telefax : |
91-33-22486960 |
|
E-Mail : |
|
|
|
|
|
Solicitors : |
|
|
Name : |
Khaitan and Company, LLP |
|
Address : |
Kolkata, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary Company: |
|
|
|
|
|
Associate Company : |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Enterprise where
KMP and/or Close member of the family have significant influence or control: |
|
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
INR 1/- each |
INR 500.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
356955322 |
Equity Shares |
INR 1/- each |
INR 356.955 Million |
|
|
|
|
|
The Company has only one class of shares referred to as equity shares having a par value of Rs. 1/–. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholding.
Reconciliation of the
number of equity shares outstandings
|
Particular |
As on 31.03.2017 |
|
Number of shares at the beginning |
35,69,55,322 |
|
Add: addition during the year |
-- |
|
Number of shares at the end |
35,69,55,322 |
Shareholders holding
more than 5% equity shares
|
Name of Shareholders |
As on 31.03.2017 |
|
G.K. and Sons Private Limited |
3,67,31,833 |
|
Murari Investment and Trading Company |
3,00,53,080 |
|
Electrocast Sales India Limited |
2,98,99,981 |
|
G.K. Investment Limited |
2,17,39,560 |
|
Stemcor Metals Limited |
1,92,43,836 |
|
Uttam Commercial Company Limited |
1,85,90,570 |
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
356.955 |
356.955 |
356.955 |
|
(b) Reserves & Surplus |
28288.046 |
27709.152 |
24690.909 |
|
(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) |
28645.001 |
28066.107 |
25047.864 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
11272.027 |
11409.624 |
12843.759 |
|
(b) Deferred tax liabilities
(Net) |
2982.068 |
2987.204 |
308.672 |
|
(c) Other long term
liabilities |
2012.075 |
1499.037 |
8.271 |
|
(d) long-term provisions |
195.616 |
157.651 |
129.862 |
|
Total
Non-current Liabilities (3) |
16461.786 |
16053.516 |
13290.564 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
5769.928 |
7582.861 |
8101.945 |
|
(b) Trade payables |
2159.385 |
2608.511 |
2214.338 |
|
(c) Other current liabilities |
4256.096 |
3601.676 |
5194.397 |
|
(d) Short-term provisions |
408.321 |
362.491 |
769.365 |
|
Total
Current Liabilities (4) |
12593.730 |
14155.539 |
16280.045 |
|
|
|
|
|
|
TOTAL |
57700.517 |
58275.162 |
54618.473 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
16348.648 |
17061.376 |
23872.128 |
|
(ii) Intangible Assets |
50.478 |
81.141 |
0.000 |
|
(iii) Capital work-in-progress |
12097.585 |
12784.169 |
0.000 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
11460.611 |
11460.327 |
12586.397 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
121.180 |
207.048 |
213.407 |
|
(e) Other Non-current assets |
418.556 |
323.466 |
33.968 |
|
Total
Non-Current Assets |
40497.058 |
41917.527 |
36705.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
9.051 |
26.715 |
71.546 |
|
(b) Inventories |
4385.346 |
3509.241 |
4957.856 |
|
(c) Trade receivables |
4710.954 |
7020.953 |
5803.476 |
|
(d) Cash and cash equivalents |
3334.742 |
997.704 |
2102.242 |
|
(e) Short-term loans and
advances |
146.240 |
78.657 |
3651.274 |
|
(f) Other current assets |
4617.126 |
4724.365 |
1326.179 |
|
Total
Current Assets |
17203.459 |
16357.635 |
17912.573 |
|
|
|
|
|
|
TOTAL |
57700.517 |
58275.162 |
54618.473 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
18341.806 |
20161.528 |
21537.789 |
|
|
Other Income |
949.375 |
412.041 |
308.113 |
|
|
TOTAL
|
19291.181 |
20573.569 |
21845.902 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
7643.664 |
8554.033 |
10372.682 |
|
|
Purchases of Stock-in-Trade |
566.126 |
487.391 |
865.31 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(145.682) |
302.334 |
50.927 |
|
|
Employees benefits expense |
1841.928 |
1761.219 |
1599.067 |
|
|
Other expenses |
5652.841 |
6409.087 |
5867.089 |
|
|
TOTAL |
15558.877 |
17514.064 |
18755.075 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
3732.304 |
3059.505 |
3090.827 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
2010.516 |
1690.779 |
1453.162 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
1721.788 |
1368.726 |
1637.665 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
636.885 |
648.850 |
674.300 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
1084.903 |
719.876 |
963.365 |
|
|
|
|
|
|
|
Less |
TAX |
312.073 |
161.174 |
236.649 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
772.830 |
558.702 |
726.716 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
2.17 |
1.57 |
2.05 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
1996.268 |
1672.529 |
3696.266 |
|
Cash generated from operations |
4731.208 |
5194.931 |
4039.332 |
|
Net cash flow from operating activity |
4451.927 |
5098.724 |
3948.090 |
QUARTERLY RESULTS
|
Particulars |
30.06.2017 |
30.09.2017 |
|
Audited / Unaudited |
Unaudited |
Unaudited |
|
|
1ST Quarter |
2nd Quarter |
|
Net Sales |
4788.660 |
4234.610 |
|
Total Expenditure |
4333.840 |
3703.320 |
|
PBIDT (Excl OI) |
454.820 |
531.290 |
|
Other Income |
199.430 |
144.890 |
|
Operating Profit |
654.250 |
676.180 |
|
Interest |
498.180 |
528.550 |
|
Exceptional Items |
NA |
NA |
|
PBDT |
156.070 |
147.630 |
|
Depreciation |
149.150 |
151.670 |
|
Profit Before Tax |
6.920 |
(4.040) |
|
Tax |
4.710 |
(41.260) |
|
Provisions and contingencies |
NA |
NA |
|
Profit After Tax |
2.210 |
37.220 |
|
Extraordinary Items |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
|
Other Adjustments |
NA |
NA |
|
Net Profit |
2.210 |
37.220 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
93.75 |
127.11 |
98.35 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
3.89 |
2.87 |
3.71 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
96.00 |
105.30 |
71.92 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.85 |
0.87 |
0.62 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.13 |
0.10 |
0.13 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.45 |
0.47 |
0.60 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.66 |
0.74 |
0.98 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.44 |
0.50 |
0.65 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.99 |
1.07 |
0.95 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
1.86 |
1.81 |
2.13 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
4.21 |
2.77 |
3.37 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
1.34 |
0.96 |
1.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
2.70 |
1.99 |
2.90 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.37 |
1.16 |
1.10 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
1.02 |
0.91 |
0.80 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.50 |
0.48 |
0.46 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
53.34 |
57.89 |
69.03 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets
/ Total Current Liabilities) |
1.37 |
1.16 |
1.10 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
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 |
356.955 |
356.955 |
356.955 |
|
Reserves & Surplus |
24690.909 |
27709.152 |
28288.046 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
25047.864 |
28066.107 |
28645.001 |
|
|
|
|
|
|
Long Term borrowings |
12843.759 |
11409.624 |
11272.027 |
|
Short Term borrowings |
8101.945 |
7582.861 |
5769.928 |
|
Current Maturities of Long term debt |
3696.266 |
1672.529 |
1996.268 |
|
Total
borrowings |
24641.970 |
20665.014 |
19038.223 |
|
Debt/Equity
ratio |
0.984 |
0.736 |
0.665 |
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
|
21537.789 |
20161.528 |
18341.806 |
|
|
|
(6.390) |
(9.026) |
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
|
21537.789 |
20161.528 |
18341.806 |
|
Profit |
726.716 |
558.702 |
772.830 |
|
|
3.37% |
2.77% |
4.21% |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
356.955 |
356.955 |
|
(b) Reserves & Surplus |
|
26007.006 |
24548.753 |
|
(c) Non- Controlling Interest |
|
2.134 |
2.225 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
26366.095 |
24907.933 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
11349.738 |
11524.588 |
|
(b) Deferred tax liabilities
(Net) |
|
2982.708 |
2983.619 |
|
(c) Other long term
liabilities |
|
195.616 |
157.651 |
|
(d) long-term provisions |
|
2012.075 |
1500.270 |
|
Total
Non-current Liabilities (3) |
|
16540.137 |
16166.128 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
7057.477 |
8621.891 |
|
(b) Trade payables |
|
2858.021 |
3201.833 |
|
(c) Other current liabilities |
|
423.459 |
364.530 |
|
(d) Short-term provisions |
|
4411.990 |
3816.385 |
|
Total
Current Liabilities (4) |
|
14750.947 |
16004.639 |
|
|
|
|
|
|
TOTAL |
|
57657.179 |
57078.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
16989.061 |
17687.756 |
|
(ii) Intangible Assets |
|
57.162 |
90.139 |
|
(iii) Capital work-in-progress |
|
12097.585 |
12784.169 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
8405.806 |
7837.910 |
|
(c) Goodwill on consolidation |
|
21.603 |
21.603 |
|
(d) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(e) Long-term Loan and Advances |
|
124.911 |
210.819 |
|
(f) Other Non-current assets |
|
419.587 |
323.820 |
|
Total
Non-Current Assets |
|
38115.715 |
38956.216 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
9.051 |
26.716 |
|
(b) Inventories |
|
6295.349 |
5923.934 |
|
(c) Trade receivables |
|
4463.515 |
5396.878 |
|
(d) Cash and cash equivalents |
|
3565.736 |
1403.022 |
|
(e) Short-term loans and
advances |
|
520.880 |
434.220 |
|
(f) Other current assets |
|
4686.933 |
4937.714 |
|
Total
Current Assets |
|
19541.464 |
18122.484 |
|
|
|
|
|
|
TOTAL |
|
57657.179 |
57078.700 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
21197.450 |
22042.309 |
|
|
Other Income |
|
1195.602 |
291.071 |
|
|
TOTAL
|
|
22393.052 |
22333.380 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
7643.664 |
8554.033 |
|
|
Purchases of Stock-in-Trade |
|
1291.815 |
1253.360 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
359.007 |
(180.653) |
|
|
Employees benefits expense |
|
2374.752 |
2290.934 |
|
|
Other expenses |
|
6625.352 |
7415.600 |
|
|
TOTAL |
|
18294.590 |
19333.274 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
4098.462 |
3000.106 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
2103.519 |
1803.273 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
1994.943 |
1196.833 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
669.018 |
672.528 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
1325.925 |
524.305 |
|
|
|
|
|
|
|
Less |
TAX |
|
337.948 |
169.206 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
987.977 |
355.099 |
|
|
|
|
|
|
|
Add |
Add:-Share
of Profit/(Loss) in Associates and Joint Venture (Net) |
|
661.311 |
(628.506 |
|
|
|
|
|
|
|
Add |
Share
of Unrealized Profit/(Loss) in Associates (Net) |
|
3.144 |
(0.785) |
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
FOR THE YEAR |
|
1652.432 |
(274.192) |
|
|
|
|
|
|
|
|
Profit/(Loss)
for the year attributable to: |
|
|
|
|
|
Owners of the Company |
|
1652.523 |
(274.205) |
|
|
Non-Controlling Interest |
|
(0.091) |
0.013 |
|
|
|
|
|
|
|
|
Other
Comprehensive Income |
|
|
|
|
|
A (i) Items that will not be reclassified to profit or
loss |
|
(9.970) |
(17.876) |
|
|
(ii) Income tax related to items that will not be
reclassified to profit or loss |
|
3.483 |
6.186 |
|
|
B (i) Items that will be reclassified to profit or loss |
|
18.905 |
(74.674) |
|
|
(ii) Income tax related to items that will be reclassified
to profit or loss |
|
(6.542) |
25.873 |
|
|
C Share of Other Comprehensive Income in Associates and Joint
Ventures (Net of tax) |
|
(0.334) |
(0.911) |
|
|
|
|
|
|
|
|
Other
Comprehensive Income for the year (net of tax) |
|
5.542 |
(61.432) |
|
|
|
|
|
|
|
|
Total
Comprehensive Income for the year |
|
1657.974 |
(335.624) |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
4.63 |
(0.77) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
Subject is a public limited company in India having its corporate office in Kolkata in the State of West Bengal and registered office at Rajgangpur, District: Sundergarh in the State of Odisha and is engaged in the manufacture and supply of Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast iron (CI) Pipes as its core business and produces and supplies Pig Iron in the process. It also produces Metallurgic Coke, Sinter and Power for captive consumption. The company caters to the needs of Water Infrastructure Development. The Company’s shares are listed on the National Stock Exchange of India Limited and BSE Limited.
OPERATIONS
The Company’s Revenue from Operations on standalone basis was reported lower at INR 18341.800 Million during the year as compared to INR 20161.500 Million reported in the previous year. The Export sales decreased by around 53.52% from INR 7781.300 Million in 2015-16 to INR 5068.600 Million in 2016-17, due to slow down of world economy, antidumping/ anti-subsidy duties on Indian DI pipes by European Commission. The Company’s profit after tax (PAT) for the Financial Year 2016-17 was reported at INR 772.800 Million as against INR 558.700 Million for Financial Year 2015-16, mainly due to optimum utilisation of resources, procurement planning and increase in Other Income.
The Revenue from Operations on consolidated basis, for the year ended 31 March 2017 was down by 3.83% from INR 22042.300 Million in 2015-16 to INR 2,119.75 Million in 2016-17. The consolidated PAT for the year ended 31 March 2017 was INR 1652.400 Million as against loss after tax of INR 274.200 Million for the previous Financial Year.
During the year, the production of Ductile Iron (DI) Pipes was 2,80,287 MT as against 2,92,467 MT in the previous year. The production of Cast Iron (CI) Pipes at Elavur was 34,473 MT as against 33,639 MT in the previous year.
DI Fittings and Accessories produced 8,510 MT of DI Fittings in 2016-17 as against 6,572 MT in 2015-16. Further, improvement in productivity, product variety and quality etc. is expected at Haldia Fittings Plant in current financial year.
The Company continues to provide special attention towards improvement in production and productivity with higher energy efficiency. Further, to meet and improve upon the expectations of both International and Indian customers, the Company has added a number of product variants to its existing product base.
There have been no material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this report and there has been no change in the nature of business.
FUTURE PROSPECTS
India is growing at a fast rate. The growth in Gross Domestic Product of the country is sustaining steadily. With economic upliftment, rapid urbanization is taking place all over India, where villages are being transformed to towns, towns into cities and cities into megacities. So the future need for water in India is enormous. The solution is piped supply of surface water in usable form. At the same time disposal need of used water is also growing simultaneously, warranting more investment in the sewerage and waste water sector.
Moreover, India has a highly seasonal pattern of rainfall, with 50% of precipitation falling in just 15 days and over 90% of river flows in just four months. This calls for regular irrigation of vast area of land to sustain agricultural activity. Till now irrigation in India was mainly canal based. But due to problems being faced for land acquisition and to minimize transmission loss due to percolation and evaporation, the government is stressing more on piped irrigation, throwing huge scope for use of ductile iron pipes.
The pipe demand for Industrial water supply is also growing with more industrialization. The real estate industry has also seen rapid growth in recent years.
As a result, the Indian pipes business has been growing rapidly due to increasing demand for pipes. Among the several varieties of pipes available in the market, the demand for ductile iron pipes in particular, is on a rise due to its high dependability and high durability. Ductile iron pipe in view of its inherent features like high ductility and bursting strength, higher corrosion and abrasion resistance, easy laying and long service life is the preferred choice over other types of pipes for water and sewerage transportation.
With the continued focus of the Government in this sector, the growing demand for ductile iron pipes is likely to continue in medium and long term. As such future of the Industry appears to be bright.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT
Overview
The Company is engaged in the business of manufacturing Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF) and Cast Iron (CI) Pipes. The Company is the first to set up a Ductile Iron Pipe Plant in India. Today it is India’s leading pipeline solution provider. It has a strong brand presence around the Globe. Since 1994, the Company has maintained its edge over its competitors.
Industry Outlook
Water and sewerage infrastructure development in Indian urban and rural sector has been the key engine of growth acceleration for the DI Pipe Industry. With only around 31% of India’s population currently urbanized, along with high population density, India’s urbanization trends have scope to significantly accelerate. Further, the country faces immense problem of drinking water supplies and has poor transmission and distribution networks for water. The Indian water and waste water market is growing at the rate of 10%-12% every year.
To improve and sustain the water availability, the Central Government has initiated a number of major urban development schemes to transform the urban scenario of the country. This will result in large investment in the Water Supply and Sewerage System. Under the ‘100 Smart City Project’ INR 50,000 Million will be spent to modernize 100 selected cities with latest information technology and all modern amenities including 24 hours Water Supply. Matching grant will come from the State and private stakeholders.
Another major initiative is Atal Mission for Rejuvenation and Urban Transformation Yojna (AMRUT). Under AMRUT, 500 Small City will undergo infrastructure revamping. A major part of the investment will be spent on Water Supply and Sewerage. INR 50,000 Million will be provided as central assistance over a 5 (five) year period and matching grant is to be provided by the State. Another INR 20,000 Million will be spent under the ‘Namami Gange’ Scheme where cities on the bank of river Ganga and its tributaries will have modern waste water conveyance and treatment facilities to make the rivers clean.
The Company continues to maintain its dominant position in the market against competitors. The Company, after entrenching itself in the prestigious European and Gulf markets, is continuously expanding the business to new countries like Tanzania, Zambia, Congo, Nigeria, Senegal, Morocco in Africa, Vietnam, Cambodia, Myanmar in South East Asia. The Company will continue to maintain its emphasis on the Gulf markets where it has a historically strong presence.
Demand drivers for DI
Pipes
The following factors would drive the demand for DI Pipes:
1. The 500 numbers of AMRUT schemes and 100 smart city project launched by the Government will result in a surge in demand for the products.
2. Thrust of the Government to provide drinking water and sanitation to 100% of the population and make funds available to achieve it.
3. The Prime Minister has announced housing for all by 2022, which will drive growth for piping. India has at present shortage of 59 million houses and need additional 51 million houses (total 110 million) by 2022.
4. Low cost housing and rural is picking up in a big way after the recent announcement of subsidy by the Prime Minister.
5. With diminishing fresh water resources, the need to conserve water and reduce leakage has become important. So demand for more dependable pipe material like DI pipe is growing.
More utilities are focusing on life cycle cost rather than initial cost to have a more durable water supply solution.
FY 2016-17 vs. FY
2015-16
The Company’s Revenue from Operations was reported lower at INR 18341.800 Million during the year as compared to INR 20161.500 Million reported in the previous year. The Export sales decreased by around 53.52% from INR 7781.300 Million in 2015-16 to INR 5068.600 Million in 2016-17, due to slow down of world economy, anti-dumping/antisubsidy duties on Indian DI pipes by European Commission. The Company’s profit after tax (PAT) for the FY 2016-17 was reported at INR 77.28 Million as against INR 558.700 Million for FY 2015-16, mainly due to optimum utilization of resources, procurement planning and increase in Other Income.
PRODUCT WISE
PERFORMANCE
Ductile Iron (DI)
Pipes
The Ductile Iron Pipe Plant, with a total capacity of 2,80,000 TPA produced 2,80,287 MT of DI Pipes during the year 2016- 17 compared to 2,92,467 MT in 2015-16. The production was impacted by maintenance shut down. Initiatives continue by the Company to sustain improving productivity.
The main raw materials used in the production of DI pipes are Iron Ore and Coke. Iron Ore is mainly procured from Odisha and Jharkhand and Coke is captively produced at Haldia. The DI Pipes produced by the Company is sold in India and globally. The sale of DI Pipes contributed to 75% of the total revenues of the Company during the year amounting to INR 13480.000 Million.
Cast Iron (CI) Pipes
The Cast Iron Pipe Plant, with a total capacity of 1,08,000 TPA produced 34,473 MT of CI Pipes in 2016-17 compared to 33,639 MT in 2015-16. The capacity utilisation was lower as the demand for Cast Iron Pipes remains low.
The main raw material used in the production of CI pipes is Pig Iron, which is sourced from domestic sources. The CI Pipes produced by the Company is sold mainly to the states in Southern India. The sale of CI Pipes contributed INR 148.80 Million to the total revenues of the Company during the year.
DI Fittings and
Accessories
DI Fittings and Accessories produced 8,510 MT of DI Fittings in 2016-17 as against 6,572 MT in 2015-16. The Company has enhanced the capacity through installation of new facility at Haldia Works for improving the performance of the division which is under operation. Initiative continued to improve productivity. The sale of DI Fittings and Accessories contributed to INR 109.61 Million in the total revenues of the Company during the year.
Power Plant
12 MW Power Plant at Haldia has contributed 82.49 million units in 2016-17 to SEB grid in place of 70.17 million units in 2015-16. Generation increased due to higher availability of steam from Coke Oven and Sponge Iron Boilers for higher running days.
Captive Coke Oven
Plant
The Coke Oven Plant, with a total capacity of 2,25,000 TPA at Haldia, produced 167,099 MT of Metallurgical Coke in 2016-17 against 2,09,492 MT in 2015-16, mainly for captive consumption in Blast Furnace at Khardah Works. The production was lower as the demand for surplus, after meeting the captive requirements, was sluggish because of volatile price during this period. The primary raw material for producing Coke that is Coking Coal was imported from Australia.
OUTLOOK
Electrosteel Castings is the first to start manufacturing Ductile Iron Pipes and Fittings in India, in 1994. Currently, the group has the maximum capacity to produce DI Pipe, DI Fittings and CI Pipes in India. Electrosteel is well known for innovation and for diversity in its product lines. The Company was instrumental in developing various classes of pipes and various types of protective coatings and huge range of fittings. On the strength of quality, comparable to any other prime international manufactures, Electrosteel Castings DI Pipes and Fittings are accepted in Europe, Africa, Middle East, Far East and in USA. With this outlook, the Company is hopeful of having comfortable order position to sustain in domestic market in 2017-18.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Term loan from Financial institutions |
652.898 |
420.000 |
|
|
|
|
|
Short-term
borrowings |
|
|
|
From related parties |
9.997 |
210.213 |
|
From Others |
300.000 |
350.000 |
|
Total |
962.895 |
980.213 |
INDEX
OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G54729637 |
100041803 |
INDUSIND BANK LTD. |
05/07/2016 |
05/09/2017 |
- |
500000000.0 |
SAVITRI TOWERS3A, UPPER WOOD STREETKOLKATAWB700017IN |
|
2 |
G55442966 |
10618867 |
INDUSIND BANK LTD. |
31/12/2015 |
05/09/2017 |
- |
1100000000.0 |
SAVITRI TOWERS3A, UPPER WOOD STREETKOLKATAWB700017IN |
|
3 |
G48920680 |
10584076 |
Axis Bank Limited |
10/07/2015 |
28/06/2017 |
- |
2382060000.0 |
Corporate Banking Branch1, Shakespeare Sarani, AC Market BuildingKolkataWB700071IN |
|
4 |
C53820874 |
10520069 |
YES BANK LIMITED |
04/09/2014 |
27/04/2015 |
- |
400000000.0 |
56A, Hemanta Basu Sarani,DalhousiekolkataWB700001IN |
|
5 |
C41352543 |
10540880 |
IL & FS TRUST COMPANY LIMITED |
18/07/2014 |
24/11/2014 |
- |
105776000000.0 |
IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EASTMUMBAIMH400051IN |
|
6 |
C42407304 |
10504949 |
EXPORT-IMPORT BANK OF INDIA |
20/06/2014 |
06/01/2015 |
- |
500000000.0 |
FLOOR 21, CENTRE ONE BUILDINGWORLD TRADE CENTRE , CUFFE PARADEMUMBAIMH400005IN |
|
7 |
C42406900 |
10504946 |
EXPORT-IMPORT BANK OF INDIA |
20/06/2014 |
06/01/2015 |
- |
450000000.0 |
FLOOR 21, CENTRE ONE BUILDINGWORLD TRADE CENTRE , CUFFE PARADEMUMBAIMH400005IN |
|
8 |
C77640191 |
10456029 |
Axis Trustee Services Limited |
30/09/2013 |
15/01/2016 |
- |
500000000.0 |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound,Pandurang Budhkar Marg, Worli,MumbaiMH400025IN |
|
9 |
C41920885 |
10437896 |
State Bank of India |
28/06/2013 |
06/01/2015 |
- |
2000000000.0 |
Corporate Accounts Group Branch, 2nd Floor,Reliance House, 34, Jawaharlal Nehru RoadKolkataWB700071IN |
|
10 |
G16118952 |
10415104 |
Punjab National Bank |
20/03/2013 |
29/09/2016 |
- |
12950000000.0 |
LARGE CORPORATE BRANCH44, PARK STREETKolkataWB700016IN |
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
SEPTEMBER 2017
|
|
|
Particulars |
quarter ended |
quarter ended |
6 months ended |
|
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
1 |
|
Income from
Operations |
|
|
|
|
|
|
Sales/Income from Operations (Gross) |
4234.613 |
4788.664 |
9023.277 |
|
|
|
b) Other Operating Income |
144.889 |
199.429 |
344.318 |
|
|
Total Income from
Operations (Net) |
4379.502 |
4988.093 |
9367.595 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials consumed |
1881.736 |
2265.767 |
4147.503 |
|
|
b) |
Purchase of Stock-in-trade |
327.752 |
82.924 |
410.676 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(368.242) |
(41.028) |
(409.270) |
|
|
d) |
Employee benefit expenses |
535.586 |
473.940 |
1009.526 |
|
|
e) |
Finance Costs |
528.552 |
475.496 |
1004.048 |
|
|
f) |
Depreciation and amortization expense |
151.673 |
149.146 |
300.819 |
|
|
4) |
Other expenses |
1326.487 |
1574.925 |
2901.412 |
|
|
Total Expenses |
4383.544 |
4981.170 |
9364.714 |
|
|
|
|
|
|
|
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
(4.042) |
6.923 |
2.881 |
|
|
10 |
Tax Expense: |
|
|
|
|
|
|
Current Tax |
2.704 |
23.733 |
26.437 |
|
|
|
Differed tax |
(43.966) |
(19.018) |
(62.984) |
|
|
11 |
Net Profit /(Loss) from
ordinary activities after tax |
37.220 |
2.208 |
39.428 |
|
|
|
Other Comprehensive
Income: |
|
|
|
|
|
|
A. Items that will not be reclassified to profit or loss |
(4.138) |
(2.563) |
(6.701) |
|
|
|
Income tax relating to items that will be reclassified to profit or loss |
1.369 |
0.887 |
2.256 |
|
|
|
B. Items that will be reclassified to profit or loss |
(1.110) |
6.114 |
5.004 |
|
|
|
Income tax relating to items that will be reclassified to profit or loss |
0.384 |
(2.116) |
(1.732) |
|
|
|
Other Comprehensive Income for the year, net of taxes |
(3.495) |
2.322 |
(1.173) |
|
|
|
Total Other
Comprehensive Income for the period |
33.725 |
4.530 |
38.255 |
|
|
12 |
Paid up equity share capital (Eq. shares of INR 10/- each) |
356.955 |
356.955 |
356.955 |
|
|
13 |
Reserve excluding revaluation reserves |
|
|
|
|
|
14 |
|
Earnings per share (before/after extraordinary items) of Rs.10/- each |
|
|
|
|
|
|
Basic & Diluted |
0.10 |
0.01 |
0.11 |
STATEMENT OF ASSETS
ANS LIABILITIES AS ON 30TH SEPTEMBER 2017
|
SOURCES
OF FUNDS |
30.09.2017 |
|
|
(Unaudited) |
|
|
|
Non-Current Assets |
|
|
(a) Property, Plant and
Equipment |
16123.698 |
|
(b) Capital Work in progress |
12131.178 |
|
(c) Intangible Assets |
36.877 |
|
(d) Financial Assets |
|
|
(i)
Investment |
11460.062 |
|
(ii)
Trade Receivables |
11.140 |
|
(iii)
Loans |
194.712 |
|
(iv)
Other Financial Assets |
360.465 |
|
(e) Other Non-Current Assets |
104.265 |
|
|
|
|
Total
Non- Current Assets |
40422.397 |
|
|
|
|
Current
Assets |
|
|
(a) Inventories |
4714.721 |
|
(b) Financial Assets |
|
|
(i)
Investment |
8.461 |
|
(ii)
Trade Receivables |
5815.941 |
|
(iii)
Cash and cash equivalents |
296.832 |
|
(iv)
Bank Balance other than (iii) above |
951.939 |
|
(v)
Loans |
107.929 |
|
(vi)
Other Financial Assets |
1211.346 |
|
|
|
|
(c) Other current Assets |
3669.949 |
|
Total
Current Assets |
16777.118 |
|
|
|
|
TOTAL
ASSETS |
57199.515 |
|
|
|
|
(B)
EQUITY AND LIABILITIES |
|
|
|
|
|
1
EQUITY |
|
|
(a)
Equity Share Capital |
356.955 |
|
(b)
Other Equity |
28111.490 |
|
Equity
to overseas of the company |
28468.445 |
|
|
|
|
2.
Non-current Liabilities |
|
|
(a) Financial Liabilities |
|
|
(i)
Borrowing |
10093.601 |
|
|
|
|
(b) Provisions |
196.668 |
|
(c) Deferred Tax Liabilities |
2918.560 |
|
(d) Other Non-current
liabilities |
1911.595 |
|
(e) Non-current tax
liabilities |
331.038 |
|
Total
Non-current Liabilities |
15451.462 |
|
|
|
|
2.Current
Liabilities |
|
|
|
|
|
(a) Financial Liabilities |
|
|
(i) Borrowing |
7210.530 |
|
(ii) Trade payables |
2085.978 |
|
(iii) Other Financial Liabilities |
2542.896 |
|
(b) Other Current Liabilities |
1163.330 |
|
(d) Provisions |
229.671 |
|
(e) Current Tax Liabilities |
47.203 |
|
Total
Current Liabilities |
13279.608 |
|
|
|
|
TOTAL
EQUITY AND LIABILITIES |
57199.515 |
1. 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 reviewed by Audit Committee and approved by the Board of Directors at their meeting held on November 08, 2017.The above results have been subjected to Limited Review by the Statutory Auditors.
2. The Company operates mainly in one business segment viz. Pipes and all other
activities revolve around the main business.
3. The Board of Directors of the Company, at its meeting held on August 11,
2014 had approved the Scheme of Amalgamation (“the Scheme”) of its wholly owned
subsidiary, Mahadev Vyapaar Private Limited. with the Company with effect from
April 1, 2014 (“Appointed Date”). Mahadev Vyapaar Private Limited. had filed an
application before the Hon’ble High Court at Calcutta, which has sanctioned the
said Scheme. The application filed by the Company before the Hon’ble High Court
at Orissa will be taken by the National Company Law Tribunal, Kolkata Bench
(“NCLT”) as per Notification no.S.O. 3677(E) dated December 7, 2016 and Rule 3
of Companies (Transfer of Pending Proceedings) Rules, 2016. The said
application is yet to be transferred to NCLT. No effect of the Scheme has
therefore been given in the above results of the Company.
4. In pursuance of the Order dated September 24, 2014 issued by the Hon’ble
Supreme Court of India (the Order) followed by the Ordinance promulgated by the
Government of India, Ministry of Law and Justice (legislative department) dated
October 21, 2014 (Ordinance) for implementing the Order, allotment of Parbatpur
coal block (coal block/mines) to the Company which was under advanced stage of
implementation, had been cancelled w.e.f. April 01, 2015. In terms of the
Ordinance, the Company was allowed to continue the operations in the said block
till March 31, 2015. Accordingly, the same had been handed over to Bharat
Coking Coal Limited (BCCL) as per the direction from Coal India Ltd. (CIL) with
effect from April 01, 2015 and the same has been subsequently alloted to Steel
Authority of India Limited (SAIL).
Following a petition filed by the Company, the Hon’ble High Court at Delhi has
pronounced it’s judgement on March 09, 2017. Accordingly based on the said
judgement, the Company has claimed INR 15317.600 Million towards compensation
against the said coal block now being alloted to SAIL, acceptance whereof is
awaited. Pending acceptance of the Company's claim as above;
(i) INR 12888.411 Million incurred pertaining to the coal block till March 31,
2015 after setting off income, stocks etc. there against as per the accounting
policy then followed by the company has been continued to be shown as freehold
land, capital work in progress, other fixed assets and other respective head of
accounts;
(ii) Interest and other finance cost for the year ended March 31, 2016 against
the fund borrowed and other expenses directly attributable in this respect
amounting to INR 951.474 Million has been considered as other recoverable under
current assets; and
(iii) Compensation of INR 831.234 Million so far received and net realisations
against sale of assets, advances etc. amounting to INR 63.383 Million have been
adjusted.
Disclosure as per Indian Accounting Standard and adjustments arising with
respect to above will be given effect to on final acceptance/settlement of the
claim.
5. In terms of the Hon'ble Supreme Court Order as referred above, North Dhadhu
Coal Block, allotted in joint venture with other companies, has also been
cancelled w.e.f. September 24, 2014. The Company barring initial contribution
of INR 82.281 Million and company's share of bank guarantee amounting to INR
274.500 Million (encashment of which has been stayed by Hon'ble High Court of
Jharkhand) has not made any further investments in the said joint venture
company . In respect of Company's investment in North Dhadhu Coal Block,
allotted in joint venture with other companies, in view of the management, the
compensation to be received in terms of the ordinance is expected to cover the
cost incurred by the Joint Venture Company and thereby no impairment requiring
any adjustments in value of such investment is expected to arise.
6. Due to delay in grant of forest, environment and other clearances from
various authorities and execution of mining lease of an area of 192.50 ha. by
the State Government of Jharkhand for iron and manganese ores at Dirsumburu in
Kodilabad Reserve Forest, Saranda of West Singhbhum, Jharkhand, the validity
period of letter of intent granted in this respect expired on January 11, 2017.
The Company filed a writ petition before the Hon'ble High Court of Jharkhand on
January 10, 2017, praying inter-alia for direction for grant of said lease in
favour of the Company. The Hon'ble High Court in its order while observed,
being not averse in granting relief with respect to cut off date, admitted the
said petition and fixed the case for further hearing and adjudication. Pending
decision of the High Court, INR 621.602 Million so far incurred in connection with
these Mines/related facilities, have been carried forward under respective
heads of fixed assets, capital work in progress and advances.
7. The Company’s investment in Electrosteel Steels Limited (ESL), an Associate
as required in terms of Ind AS has been carried at INR 6059.288 Million. ESL is
passing through financial stringency and one of the lending banker has filed an
application before Hon'ble National Company Law Tribunal (NCLT) for initiation
of Corporate Insolvency Resolution Process (CIRP), which has since been
admitted and order to the effect and appointment of Interim Resolution
Professional (IRP) has been passed on July 21, 2017. Pending completion of the
resolution process and ameliorative measures to be implemented in this respect,
Company's investment in the said associate has been carried at deemed cost
being fair value on April 1, 2015, the date of transition to Ind AS and no
impairment in value thereof has been considered necessary.
8. Post the applicability of Goods and Service Tax (GST) with effect from July
01, 2017, revenue from operations is disclosed net of GST. Accordingly, the
revenue from operations and other expenses for the quarter/ half year ended
September 30, 2017 are not comparable with the previous periods presented in
the results. The impact of the same however is not significant.
9. Pre Goods and Service Tax (GST), the Company was enjoying certain benefits
under Industrial Promotion scheme of state government. Post GST, pending
notifications by the state government, on prudent basis, the company has not
recognised any income under the scheme for quarter ended September 30, 2017.
10. The listed non-convertible debentures of the Company aggregating Rs. 5000.00
lakhs as on September 30, 2017 are fully secured against Company’s fixed assets
other than assets at Elavur.
11. Additional disclosures as per Regulation 52(4) of SEBI (Listing Obligations
and Disclosure Requirements 2015), are given below in respect of listed Non
Convertible Debentures (NCD's) pertaining to the Company as on September 30,
2017
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
a) Various show cause
notices/demands issued/ raised, which in the opinion of the management are
not tenable and are pending with various forum / authorities: |
|
|
|
i) Sales Tax |
850.919 |
819.959 |
|
ii) Excise, Custom Duty and Service tax [net of provision of INR 50.000 million (March 31, 2016: INR 50.000 million and April 1, 2015 INR 0.500 million)] |
988.425 |
1492.344 |
|
iii) Income Tax |
71.416 |
25.686 |
|
b) Penalty for non compliance of listing agreement and disputed by the Company |
10.000 |
10.000 |
|
c) Employees State Insurance Corporation has raised demand for contribution in respect of Gross Job Charges for the year 2001–02, 2003–04 and March’08 to January’10. In the opinion of the management demand is adhoc and arbitrary and is not sustainable legally. |
9.251 |
9.251 |
|
d) Demand of Tamilnadu Electricity Board disputed by the Company |
0.820 |
0.820 |
|
e) During the year 1994 UPSEB had raised demand for electricity charges by revising the power tariff schedule applicable to the Company retrospectively from Feb’86. In the opinion of the management the revised power tariff is not applicable to the Company and accordingly the Company disputed the demand and the matter is pending before Hon’ble High Court at Allahabad |
26.174 |
26.174 |
|
f ) Corporate
guarantee issued to banks by the Company on behalf of : |
|
|
|
(i) Subsidiary Companies |
0.000 |
398.433 |
|
(ii) Others |
0.000 |
0.000 |
|
g) Standby Letter of Credit issued by banks on behalf of the company in favour of Subsidiary Companies |
1122.636 |
1338.612 |
|
h) Financial Guarantees given by banks on behalf of the Company |
385.119 |
334.666 |
|
i) Bills Discounted with Banks |
135.106 |
514.186 |
|
j) The Company has disputed downward revision in the prices affected by the purchaser subsequent to sale of certain specified materials. In the opinion of the management and also on the merit of the case, as advised legally no liability is likely to arise. The matter is subjudice and pending final determination in this respect is presently not ascertainable. |
|
|
|
Note: The Company's pending litigations comprises of claim against the company and proceedings pending with Taxation/ 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 position. Future cash outflows, if any, in respect of (a) to (e), and (j) above is dependent upon the outcome of judgments/ decisions. |
||
FIXED ASSETS
Tangible assets
- Land Freehold
- Land Leasehold
- Building
- Railway Siding
- Plant and Machinery
- Office Equipment
- Furniture and Fixtures
- Vehicles
- Livestock
Intangible assets
- Computer Software
- Mining Rights
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 63.67 |
|
|
1 |
INR 86.11 |
|
Euro |
1 |
INR 76.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
SWT |
|
|
|
|
Analysis Done by
: |
VRS |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.