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MIRA INFORM REPORT
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Report No. : |
495192 |
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Report Date : |
03.03.2018 |
IDENTIFICATION DETAILS
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Name : |
JAYASWAL NECO INDUSTRIES LIMITED (w.e.f. 05.09.2007) |
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Formerly Known
As : |
JAYASWALS NECO LIMITED |
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Registered
Office : |
F-8, MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra |
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Tel. No.: |
91-7104-237276 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
28.11.1972 |
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Com. Reg. No.: |
11-016154 |
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Capital
Investment / Paid-up Capital : |
INR 6386.258 Million |
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CIN No.: [Company Identification
No.] |
L28920MH1972PLC016154 |
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IEC No.: |
0388113758 |
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TIN No.: |
27090248267 |
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GST No.: |
27AAACJ3174F1ZQ |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAACJ3174F |
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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:
[Registered
Activity and also Confirmed by management] |
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No. of Employees
: |
3952 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Jayaswal Neco Industries Limited is a manufacturer and supplier of sanitary casting which include Centrifugally Cast Iron Pipe and Fittings, Cast Iron Manhole cover with Frames, Cast iron castings etc. The company was incorporated in the year 1972 and has its base in Nagpur (Maharashtra). The company has witnessed a decline in its turnover and incurred a loss during the year under review and has given a negative output of Rupees 7.21 in the EPS section as compared to its original face value of Rupees 10. Return on equity and Return on assets stands negative. The company is listed on NSE and BSE where its share price is trading at around INR 10.10 against its face value of INR 10. The company was also found as defaulter and it has defaulted INR 926.805 Million with BANK OF MAHARASHTRA as on 31st March 2017. Further as per quarterly results of December 2017, the company has incurred net loss of INR 1748.3 million. Trade relations are reported as poor. Business is active. Payment seems to be slow and delayed. In view of aforesaid, the company can be considered for business dealings on safe and secured trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 |
ICRA |
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Rating |
Long Term Rating = D |
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Rating Explanation |
Lowest-credit-quality and very prospects of recovery. |
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Date |
16.11.2017 |
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Rating Agency Name |
ICRA |
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Rating |
Short Term Rating = D |
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Rating Explanation |
Lowest-credit-quality and very low prospectus of recovery. |
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Date |
16.11.2017 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under:
Suit filed accounts of INR 10.000 million and above
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Borrowers’ Name : |
JAYASWAL NECO INDUSTRIES LIMITED |
|
Address : |
F-8, MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra,
India |
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Name of Individual : |
Arvind Kumar Jayswal - 00249864 |
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Name of Credit Grantors / Bank & Branch: |
Bank of Maharashtra, Nagpuri Sitabuldi |
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Amount (INR In Millions) : |
INR 926.805 Million |
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 03.03.2018.
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 DECLINED
MANAGEMENT NON-COOPERATIVE [ TEL. NO.: 91-7104-237276/ 325682/ 325683]
Given number
[91-161-4640365] Continuously ringing
[91-7104-237471]
Not exist
LOCATIONS
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Registered/ Corporate Office : |
F-8 MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra,
India |
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Tel. No.: |
91-7104-237276/ 237471/ 237472/ 236251/ 325682/ 325683/ 325684 |
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Mobile No.: |
91-9331007646 (Mr. Vijay) |
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Fax No.: |
91-7104-237583/ 236255 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Locality : |
Industrial |
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Manufacturing Facilities : |
Located at: ·
Steel Plant Division – Siltara Growth Centre,
Raipur-493111, Chhattisgarh,
India ·
Centri cast Division–MIDC Area, Hingna Road,
Nagpur, Maharashtra, India ·
Automotive Castings Division – MIDC Area, Hingna
Road and Butibori, Nagpur, Maharashtra, India ·
Construction Castings Division – Light Industrial
Area, Bhilai and Anjora (CG) · Engineering Castings Division - MIDC Area, Hingna Road, Nagpur, Maharashtra, India |
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Branch Office 1 : |
23/7
Mathura Road Opposite Plot No 253, Sector 58, Near Jharsently Government
School, Faridabad-121004, Haryana, India |
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Branch Office 2 : |
32A,
Chittaranjan Avenue, Trust House, 5th Floor, Kolkata-700012, West Bengal,
India |
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Tel No.: |
91-33-22122368
– 22120502 |
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Branch Office 3: |
“NECO HOUSE” D-307, Defence Colony, New Delhi – 110024, India |
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Tel No.: |
91-11-32041695 |
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Fax No.: |
91-11-24642190 |
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Branch Office 4: |
178-A, Light Industrial Area, Bhilai – 490026, Chhatisgarh, India |
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Tel No.: |
91-788-2282845 |
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Fax No.: |
91-788-2286679 |
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Branch Office 5: |
301, Tulsiani Chamber, Nariman Point, Mumbai – 400021, Maharashtra,
India |
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Tel No.: |
91-22-42134813 / 22832381 |
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Fax No.: |
91-22-22832367 |
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Other Branch Offices : |
Located at: · Pune · Rajkot · Bangalore · Chennai |
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Depots : |
Located at: ·
Faridabad ·
Ludhiana |
DIRECTORS
AS ON: 31.03.2017
|
Name : |
Mr. Basant Lall Shaw |
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Designation : |
Chairman / Director |
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Address : |
Usha Sadan 246, Pt R S S Marg, Civil Lines Nagpur – 440001, Maharashtra, India |
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Date of Birth/Age : |
03.08.1933 |
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Qualification : |
B. Com |
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Experience in
Specific Functional Areas : |
Associated with Iron and Steel business for over 56 years. Instrumental in setting up 1 MTPA Integrated Steel plant in Raipur and other units in the Group in India and Abroad. Founder and Chairman of Neco Group of Industries. |
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Date of Appointment : |
28.11.1972 |
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DIN No.: |
00249729 |
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Name : |
Mr. Brajkishore Hargovind Agrawal |
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Designation : |
Independent Director |
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Address : |
51, New Colony Byramji Town, Nagpur – 440001, Maharashtra, India |
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Date of Appointment : |
10.08.1994 |
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DIN No.: |
01223894 |
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Name : |
Mr. M M Vyas |
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Designation : |
Independent Director |
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Date of Birth/Age : |
07.10.1942 |
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Qualification : |
B.Sc. |
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Experience in
Specific Functional Areas : |
Experience in administration, Export Marketing and Liasoning with Government Agencies, Institutions and Banks for over 36 years and associated with business of Iron and Steel Casting and fitting over 23 year |
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Date of Appointment : |
26.02.1998 |
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DIN No.: |
00399012 |
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Name : |
Mr. Satyendra Narain Tej Narain Singh |
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Designation : |
Independent Director |
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Address : |
Ashtha Plot No.5, Satpur MIDC, (Anaada Vadi), Pipeline Road, Nasik – 422013, Maharashtra, India |
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Date of Birth/Age : |
25.05.1948 |
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Qualification : |
B-Tech (Metallurgy) |
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Experience in
Specific Functional Areas : |
Over 32 years-experience in Steel Sector. Possesses sound technical knowledge of Blast furnace, operation of Steel Plant and Quality Management. Presently acting as advisor to various Steel Sector Companies. |
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Date of Appointment : |
10.02.2014 |
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DIN No.: |
00398484 |
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Name : |
Mr. Pramod Kumar Bhardwaj |
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Designation : |
Whole Time Director (IDBI Bank Nominee) |
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Address : |
P No. 228 A, F No. 404 Rachna Sahil T Point Subhash Nagar. Nagpur – 440022, Maharashtra, India |
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Date of Appointment : |
25.02.2011 |
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DIN No.: |
03451077 |
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Name : |
Mr. Darshan Kumar Sahni |
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Designation : |
Director |
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Address : |
J 12/31 3rd Floor, Rajouri Garden, New Delhi – 110027, India |
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Date of Appointment : |
11.08.2014 |
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DIN No.: |
00131269 |
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Name : |
Mr. Bharat Pal Singh |
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Designation : |
Additional Director |
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Address : |
Flat No. 1102/03, 11th Floor, Daffodils, Neelkanth Gardens, Near Govandi Station Mumbai 400088, Maharashtra, India |
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Date of Appointment : |
26.05.2017 |
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DIN No.: |
00739712 |
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Name : |
Ms. Raji Nathani |
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Designation : |
Independent Director |
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Address : |
A-1/68, Sector-55, Sushant Lok-II, Vill-Ghata, Tehsil-Sohna, Dist-Gurugram -122011, Haryana, India |
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Date of Birth/Age : |
22.10.1966 |
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Qualification : |
B.Com. (Hon's), M.Com., ACMA |
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Experience in
Specific Functional Areas : |
Practicing Cost and Management Accountant having more than 23 years of experience in cost compliance, taxation and regulatory compliance, corporate advisory services and cost audits of petroleum, automotive and electronic industries with core competence in management of costs. |
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Date of Appointment : |
11.08.2014 |
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DIN No.: |
06945777 |
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Name : |
Mr. Arvind Shrinivasan Iyer |
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Designation : |
Independent Director |
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Address : |
Flat No 131, 13th Floor, Kalpataru J V Link Road, Andheri East, Mumbai – 400093, Maharashtra, India |
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Date of Birth/Age : |
27.03.1962 |
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Qualification : |
M.Com, MBA, ICWA |
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Experience in
Specific Functional Areas : |
Vast experience in planning and implementation of Projects and Operational expertise in manufacturing sector |
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Date of Appointment : |
13.11.2014 |
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DIN No.: |
01375173 |
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Name : |
Mr. Megh Pal Singh |
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Designation : |
Whole Time Director |
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Address : |
Block A, Flat- 1, Fourth Floor, Arihant Heights, Bhairav Society, Pachpe Di Naka Raipur – 492001, Chhattisgarh, India |
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Date of Birth/Age : |
22.03.1958 |
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Qualification : |
B.E. Metallurgy and Material Science |
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Experience in
Specific Functional Areas : |
Rich experience of about 35 years in almost all the functional areas of a Steel Plant. |
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Date of Appointment : |
13.11.2014 |
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DIN No.: |
02635073 |
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Name : |
Mr. Ramesh Jayaswal |
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Designation : |
Joint Managing Director |
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Address : |
Usha Sadan, 246, Pt R S S Marg Civil Lines, Nagpur – 440001, Maharashtra, India |
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Date of Birth/Age : |
02.02.1960 |
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Qualification : |
B.Com |
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Experience in
Specific Functional Areas : |
Associated with Iron and Steel business for over 27 year Looks after the implementation of new projects and other allied matter |
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Date of Appointment : |
05.03.1983 |
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DIN No.: |
00249947 |
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Name : |
Mrs. Kanika Sharma |
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Designation : |
Nominee Director |
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Address : |
Flat No. 205, Jagat Millenium Giripeth, Nagpur - 440010, Maharashtra, India |
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Date of Appointment : |
10.08.2017 |
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DIN No.: |
07902750 |
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Name : |
Mr. Arvindkumar Jayaswal |
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Designation : |
Managing Director and Compliance Officer |
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Address : |
Usha Sadan, 246, Pt R S S Marg Civil Lines, Nagpur – 440001, Maharashtra, India |
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Date of Birth/Age : |
26.11.1953 |
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Qualification : |
B.Sc. |
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Experience in
Specific Functional Areas : |
Associated with Iron and Steel business for over 37 year Looks after the administrative, accounts, technical and other allied matter |
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Date of Appointment : |
28.11.1972 |
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DIN No.: |
00249864 |
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh Mishra |
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Designation : |
Company Secretary |
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Address : |
Flat No. 101, Uday Apartment, Rajendra Nagar, Hingna Road,
Nagpur – 440016, Maharashtra, India |
|
Date of Appointment : |
30.04.2014 |
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PAN No.: |
AFDPM4265M |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 31.12.2017
|
Category of Shareholders |
No. of Shares |
% age holding |
|
(A) Promoter and Promoter Group |
439302841 |
68.79 |
|
(B) Public |
199330222 |
31.21 |
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|
|
|
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Total |
638633063 |
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 (A+B+C2) |
|
|
A1) Indian |
0.00 |
|
|
|
Individuals/Hindu
undivided Family |
15158690 |
2.37 |
|
|
ARBIND JAYASWAL |
2397920 |
0.38 |
|
|
BASANT LALL SHAW |
10312850 |
1.61 |
|
|
RAMESH JAYASWAL |
2397920 |
0.38 |
|
|
RITA JAYASWAL |
25000 |
0.00 |
|
|
NISHA JAYASWAL |
25000 |
0.00 |
|
|
Any Other
(specify) |
424144151 |
66.41 |
|
|
KARAMVEER IMPEX PRIVATE LIMITED |
47229000 |
7.40 |
|
|
NECO VALVES AND PUMPS PVT LTD |
864000 |
0.14 |
|
|
NECO LEASING AND FINANCE PVT LTD |
899500 |
0.14 |
|
|
JAYASWAL HOLDINGS PVT LTD |
53098951 |
8.31 |
|
|
AVON SALES AND SERVICES PRIVATE LIMITED |
39095000 |
6.12 |
|
|
JAYASWAL NECO POWER PRIVATE LIMITED |
36354500 |
5.69 |
|
|
NINE STAR PLASTIC PACKAGING SERVICES PRIVATE
LIMITED |
44294600 |
6.94 |
|
|
JAYASWAL NECO ENERGY PRIVATE LIMITED |
39732000 |
6.22 |
|
|
JAYASWAL NECO METALLICS PRIVATE LIMITED |
40710500 |
6.37 |
|
|
JAYASWAL NECO INFRASTRUCTURES PRIVATE
LIMITED |
34385500 |
5.38 |
|
|
ANURAG SALES AND SERVICES PVT LTD |
38931000 |
6.10 |
|
|
JAYASWAL NECO STEEL AND MINING PRIVATE
LIMITED |
13250000 |
2.07 |
|
|
APEX SPINNING MILLS PVT LTD |
35299600 |
5.53 |
|
|
Sub Total A1 |
439302841 |
68.79 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
439302841 |
68.79 |
|
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 (A+B+C2) |
|
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
13655249 |
2.14 |
|
|
RELIANCE CAPITAL TRUSTEE CO. LTD. A/C
RELIANCE DIVERSIFIED POWER SECTOR FUND |
13648814 |
2.14 |
|
|
Foreign
Portfolio Investors |
52500 |
0.01 |
|
|
Financial
Institutions/ Banks |
4086 |
0.00 |
|
|
Any Other
(specify) |
245 |
0.00 |
|
|
Sub Total B1 |
13712080 |
2.15 |
|
|
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 |
27301228 |
4.27 |
|
|
Individual share
capital in excess of INR 0.200 Million |
32914011 |
5.15 |
|
|
NBFCs registered
with RBI |
360 |
0.00 |
|
|
Any Other
(specify) |
125402543 |
19.64 |
|
|
DARSHAN GEMS PRIVATE LIMITED |
16520000 |
2.59 |
|
|
SALMON DEVELOPERS PRIVATE LIMITED |
16845000 |
2.64 |
|
|
COSTAL MULTITRADING PRIVATE LIMITED |
25000353 |
3.91 |
|
|
EFFICIENT STRUCTURES PRIVATE LIMITED |
27862353 |
4.36 |
|
|
RAJVARDHAN TRADEZONE PRIVATE LIMITED |
25512353 |
3.99 |
|
|
Sub Total B3 |
185618142 |
29.06 |
|
|
B=B1+B2+B3 |
199330222 |
31.21 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in:
[Registered
Activity and also Confirmed by management] |
|
|
|
|
Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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|
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Exports : |
Not Divulged |
|
|
|
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Imports : |
Not Divulged |
|
|
|
|
Terms : |
|
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Selling : |
Not Divulged |
|
|
|
|
Purchasing : |
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 : |
3952 [Approximately] |
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Bankers : |
· PNB Consortium - Lead - Punjab National Bank Mahajan Market, Sitabuldi, Nagpur - 440012, Maharashtra, India ·
Andhra Bank ·
Bank of India ·
State Bank of India ·
Bank of Maharashtra ·
UCO Bank ·
Central Bank of India ·
ICICI Bank Limited ·
Indian Overseas Bank ·
IDBI Bank Limited ·
Union Bank of India ·
Oriental Bank of Commerce |
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Facilities : |
|
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Auditors : |
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|
Name : |
Pathak H D and Associates Chartered Accountants |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Agrawal Chhallani and Company Chartered Accountants |
|
Address : |
51/A, Ground Floor, New Colony, Nagpur,
Maharashtra, India |
|
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|
|
Memberships : |
Not Available |
|
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|
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Collaborators : |
Not Available |
|
|
|
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Subsidiary : |
Jayaswal Neco Urja Limited (Upto 28.11.2016) |
|
|
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Associate
Company : |
Maa Usha Urja Limited |
|
|
|
|
Enterprises in which key managerial
personnel and their relatives are able to exercise significant influence with
whom transactions have taken place during the year : |
· Apex Spinning Mills Private Limited · Anurag Sales and Services Private Limited · Avon Sales and Services Private Limited · AMR Iron and Steel Private Limited · Jayaswal Neco Infrastructures Private Limited · Jayaswal Neco Energy Private Limited · Jayaswal Neco Metallics Private Limited · Neco Defence Systems Limited · Jayaswal Neco Steel and Mining Limited · Nine Star Plastic Packaging Services Private Limited · Karamveer Impex Private Limited · Neco Heavy Engineering and Castings Limited · Neco Ceramics Limited · NSSL Private Limited · Steel and Tube Exports Limited · Jayaswal Neco Urja Limited (w.e.f. 29.11.2016) · The Jayaswal Basant Lall Shaw Family Trust |
CAPITAL STRUCTURE
AS ON: 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
INR 10/- each |
INR 10000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
638633063 |
Equity Shares |
INR 10/- each |
INR
6386.330 Million |
|
|
Less : Allotment Money Unpaid (from other than Directors) |
|
INR 0.072
Million |
|
|
Total |
|
INR 6386.258 Million |
Reconciliation of Equity
Shares outstanding at the beginning and at the end of the year
|
PARTICULARS |
31.03.2017 |
|
|
|
No. of Shares |
INR in Million |
|
Shares outstanding at the beginning of the year |
638633063 |
6386.330 |
|
Shares outstanding at the end of the year |
638633063 |
6386.330 |
Details of
Shareholders, holding more than 5% shares of the Company
|
PARTICULARS |
31.03.2017 |
|
|
|
No. of Shares |
INR in Million |
|
Jayaswal Holdings Private Limited |
53098951 |
8.31 |
|
Karamveer Impex Private Limited |
47229000 |
7.40 |
|
Nine Star Plastic Packaging Services Private Limited |
44294600 |
6.94 |
|
Jayaswal Neco Metallics Private Limited |
40710500 |
6.37 |
|
Jayaswal Neco Energy Private Limited |
39732000 |
6.22 |
|
Avon Sales & Services Private Limited |
39095000 |
6.12 |
|
Anurag Sales & Services Private Limited |
38931000 |
6.10 |
|
Jayaswal Neco Power Private Limited |
36354500 |
5.69 |
|
Apex Spinning Mills Private Limited |
35299600 |
5.53 |
|
Jayaswal Neco Infrastructures Private Limited |
34385500 |
5.38 |
32649600 (31st March, 2016: 32649600 and 1st April, 2015: 32649600) shares were allotted in the last five years pursuant to Scheme of Arrangement without payment being received in cash.
Rights of Equity Shareholders
The Company has only one class of equity shares having a face value of INR 10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the equity shareholders will be entitled to receive any of 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 shareholder.
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 |
6386.258 |
6386.258 |
6386.258 |
|
(b) Reserves & Surplus |
9988.521 |
14592.542 |
15282.076 |
|
(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) |
16374.779 |
20978.800 |
21668.334 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
28074.702 |
30061.477 |
29631.409 |
|
(b) Deferred tax liabilities (Net) |
988.863 |
2294.628 |
2601.320 |
|
(c)
Other long term liabilities |
2.625 |
2.675 |
2.342 |
|
(d)
long-term provisions |
1.750 |
1.585 |
270.931 |
|
Total
Non-current Liabilities (3) |
29067.940 |
32360.365 |
32506.002 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
10458.047 |
10961.956 |
10225.277 |
|
(b)
Trade payables |
2864.761 |
1831.581 |
2545.269 |
|
(c)
Other current liabilities |
9811.425 |
4139.424 |
4320.670 |
|
(d)
Short-term provisions |
1072.097 |
498.766 |
615.890 |
|
Total
Current Liabilities (4) |
24206.330 |
17431.727 |
17707.106 |
|
|
|
|
|
|
TOTAL |
69649.049 |
70770.892 |
71881.442 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
47656.186 |
21842.597 |
13421.936 |
|
(ii)
Intangible Assets |
198.551 |
157.595 |
617.774 |
|
(iii)
Capital work-in-progress |
4402.484 |
28399.668 |
29844.266 |
|
(iv) Intangible assets under development |
163.590 |
69.747 |
1530.322 |
|
(b) Non-current
Investments |
0.000 |
0.001 |
0.001 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
60.938 |
62.989 |
123.920 |
|
(e)
Other Non-current assets |
2537.319 |
6818.549 |
9825.556 |
|
Total
Non-Current Assets |
55019.068 |
57351.146 |
55363.775 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
11.266 |
9.974 |
16.048 |
|
(b)
Inventories |
6813.520 |
6304.721 |
9245.941 |
|
(c)
Trade receivables |
4108.120 |
3131.730 |
3144.608 |
|
(d)
Cash and cash equivalents |
581.086 |
416.227 |
553.711 |
|
(e)
Short-term loans and advances |
1370.883 |
2690.500 |
2261.669 |
|
(f)
Other current assets |
1745.106 |
866.594 |
1295.690 |
|
Total
Current Assets |
14629.981 |
13419.746 |
16517.667 |
|
|
|
|
|
|
TOTAL |
69649.049 |
70770.892 |
71881.442 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
28477.390 |
29518.704 |
30242.701 |
|
|
|
Other Income |
288.253 |
349.476 |
173.680 |
|
|
|
TOTAL |
28765.643 |
29868.180 |
30416.381 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
13738.581 |
15718.605 |
16618.472 |
|
|
|
Purchases of Stock-in-Trade |
309.407 |
950.518 |
3045.910 |
|
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(811.889) |
776.832 |
(417.736) |
|
|
|
Employees benefits expense |
1743.307 |
1363.510 |
1576.221 |
|
|
|
Excise duty and service tax |
3313.210 |
3096.798 |
0.000 |
|
|
|
Exceptional items |
0.000 |
582.984 |
916.153 |
|
|
|
Other expenses |
7384.457 |
5415.805 |
5827.152 |
|
|
|
TOTAL |
25677.073 |
27905.052 |
27566.172 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST,
TAX, DEPRECIATION AND AMORTISATION |
3088.570 |
1963.128 |
2850.209 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
5489.498 |
2233.137 |
1848.472 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX,
DEPRECIATION AND AMORTISATION |
(2400.928) |
(270.009) |
1001.737 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
2550.702 |
820.425 |
828.379 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX |
(4951.630) |
(1090.434) |
173.358 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(358.558) |
(219.830) |
153.674 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER
TAX |
(4593.072) |
(870.604) |
19.684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
NA |
61.839 |
80.754 |
|
|
|
Freight |
NA |
1.834 |
2.308 |
|
|
TOTAL EARNINGS |
NA |
63.673 |
83.062 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
441.848 |
810.327 |
|
|
|
Components and Stores parts |
NA |
255.022 |
228.696 |
|
|
|
Capital Goods |
NA |
11.436 |
50.975 |
|
|
TOTAL IMPORTS |
NA |
708.306 |
1089.998 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (INR) |
(7.19) |
(1.36) |
0.03 |
|
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
3208.493 |
1650.010 |
2241.210 |
|
|
|
|
|
|
Cash generated from operations |
2747.005 |
4970.827 |
3448.872 |
|
|
|
|
|
|
Net Cash Flow From Operating Activities |
2716.672 |
4982.969 |
3330.551 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2017 |
30.09.2017 |
31.12.2017 |
|
Type |
1st
Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
8881.400 |
8324.400 |
8210.200 |
|
Total Expenditure |
8175.000 |
7493.100 |
7756.300 |
|
PBIDT (Excl OI) |
706.400 |
831.300 |
453.900 |
|
Other Income |
38.800 |
10.500 |
189.000 |
|
Operating Profit |
745.200 |
841.800 |
642.900 |
|
Interest |
1405.800 |
1663.100 |
1687.700 |
|
Exceptional Items |
83.600 |
0.000 |
(13.000) |
|
PBDT |
(577.000) |
(821.300) |
(1057.800) |
|
Depreciation |
634.300 |
640.400 |
686.300 |
|
Profit Before Tax |
(1211.300) |
(1461.700) |
(1744.100) |
|
Tax |
(228.000) |
(758.000) |
1.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(983.300) |
(703.700) |
(1745.600) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(983.300) |
(703.700) |
(1745.600) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
52.65 |
38.72 |
37.95 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
6.93 |
9.43 |
9.62 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
74.43 |
40.11 |
47.24 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
0.45 |
0.31 |
0.31 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.06 |
0.04 |
0.06 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.80 |
0.69 |
0.69 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
2.55 |
2.03 |
1.94 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
1.48 |
0.83 |
0.82 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
3.20 |
2.41 |
2.10 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
0.56 |
0.88 |
1.54 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
(16.13) |
(2.95) |
0.07 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(6.59) |
(1.23) |
0.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
(28.05) |
(4.15) |
0.09 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.60 |
0.77 |
0.93 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.32 |
0.41 |
0.41 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.24 |
0.30 |
0.30 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
6.54 |
6.68 |
6.59 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.60 |
0.77 |
0.93 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10/- |
|
|
|
|
Market Value |
INR 10.10/- |
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 |
6386.258 |
6386.258 |
6386.258 |
|
Reserves & Surplus |
15282.076 |
14592.542 |
9988.521 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
21668.334 |
20978.800 |
16374.779 |
|
|
|
|
|
|
long-term borrowings |
29631.409 |
30061.477 |
28074.702 |
|
Short term borrowings |
10225.277 |
10961.956 |
10458.047 |
|
Current Maturities of Long
term debt |
2241.210 |
1650.010 |
3208.493 |
|
Total
borrowings |
42097.896 |
42673.443 |
41741.242 |
|
Debt/Equity
ratio |
1.943 |
2.034 |
2.549 |
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 |
30242.701 |
29518.704 |
28477.390 |
|
|
|
(2.394) |
(3.528) |
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 |
30242.701 |
29518.704 |
28477.390 |
|
Profit/(Loss) |
19.684 |
(870.604) |
(4593.072) |
|
|
0.07% |
(2.95%) |
(16.13%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
DATE OF SATISFACTION |
AMOUNT |
ADDRESS |
|
1 |
G02785327 |
10616609 |
PNB CONSORTIUM - LEAD - PUNJAB NATIONAL BANK |
27/01/2016 |
22/04/2016 |
- |
22632300000.0 |
MAHAJAN MARKETSITABULDINAGPURMH440012IN |
|
2 |
G03506524 |
10612880 |
UNION BANK OF INDIA |
21/12/2015 |
22/04/2016 |
- |
900000000.0 |
GANDHIBAGH BRANCH,318, POST OFFICE ROAD,NAGPURMH440002IN |
|
3 |
C65210957 |
10593002 |
AXIS BANK LIMITED |
10/09/2015 |
- |
- |
2227500.0 |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN |
|
4 |
C62316930 |
10587604 |
AXIS BANK LIMITED |
31/07/2015 |
- |
- |
1400000.0 |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN |
|
5 |
C52311529 |
10566737 |
AXIS BANK LIMITED |
24/04/2015 |
- |
- |
436000.0 |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN |
|
6 |
G03018710 |
10564647 |
UCO BANK |
31/03/2015 |
22/04/2016 |
- |
359400000.0 |
FLAGSHIP CORPORATE BRANCH, 1ST FLOOR,MAFATLAL CENTRE, NARIMAN POINT,MUMBAIMH400021IN |
|
7 |
G03474087 |
10560710 |
UNION BANK OF INDIA |
19/03/2015 |
22/04/2016 |
- |
275604000.0 |
GANDHIBAGH BRANCH318 POST OFFICE ROADNAGPURMH440002IN |
|
8 |
C42503284 |
10547151 |
AXIS BANK LIMITED |
28/01/2015 |
- |
- |
939220.0 |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN |
|
9 |
G03369600 |
10541732 |
STATE BANK OF INDIA |
30/12/2014 |
22/04/2016 |
- |
980000000.0 |
INDUSTRIAL FINANCE BRANCH,5, SAI COMPLEX, BHARAT NAGAR, AMRAVATI ROAD,NAGPURMH440033IN |
|
10 |
G02897718 |
10485451 |
PUNJAB NATIONAL BANK |
24/03/2014 |
22/04/2016 |
- |
1330000000.0 |
MAHAJAN MARKET,SITABULDINAGPURMH440012IN |
|
11 |
G05646716 |
10471710 |
IDBI BANK LIMITED |
09/01/2014 |
01/06/2016 |
- |
1000000000.0 |
WTC COMPLEX,CUFFE PARADE,MUMBAIMH400005IN |
|
12 |
B83482174 |
10445870 |
AXIS BANK LIMITED |
26/08/2013 |
- |
- |
860000.0 |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN |
|
13 |
G09217142 |
10278072 |
IDBI TRUSTEESHIP SERVICES LIMITED (SECURITY TRUSTEE FOR RUPEE LENDERS) |
24/03/2011 |
27/07/2016 |
- |
4356100000.0 |
ASIAN BUILDING, GROUND FLOOR,17-R, KAMANI MARG, BALLARD ESTATE,MUMBAIMH400001IN |
|
14 |
G03378247 |
10138505 |
SBI CONSORTIUM - LEAD - STATE BANK OF INDIA |
13/01/2009 |
22/04/2016 |
- |
10976900000.0 |
INDUSTRIAL FINANCE BRANCH5, SAI COMPLEX, BHARAT NAGAR, AMRAVATI ROAD,NAGPURMH440010IN |
|
15 |
G05647706 |
10121514 |
IDBI BANK LIMITED |
25/08/2008 |
01/06/2016 |
- |
127500000.0 |
WTC COMPLEX,CUFFE PARADE,MUMBAIMH400005IN |
|
16 |
Y10349387 |
90241750 |
UNITED INSIA INSURANCE COMPANYLTD. |
17/11/2005 |
- |
- |
1600000.0 |
24 WHITES ROADP O BOXNO 876CHENNAITN600014IN |
|
17 |
Z00137174 |
80031674 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA LTD |
17/11/2005 |
17/11/2005 |
- |
165300000.0 |
IDBI TOWER WTC COMPLEX CUFFE PARADEMUMBAIMH400005IN |
|
18 |
Y10349386 |
90241749 |
BANK OF PUNJAB LTD. |
17/11/2005 |
- |
- |
15000000.0 |
171 B MITTEL COURTNARIMAN POINTMUMBAIMH400021IN |
|
19 |
Y10349286 |
90241649 |
INDUSTRIAL INVESTMENT BANK OF INDIA LTD. |
17/11/2005 |
- |
- |
14200000.0 |
EARNEST HOUSENARIMAN POINTMUMBAIMH400021IN |
|
20 |
Y10288936 |
90187037 |
GLOBAL TRUST BANK LTD |
23/12/2003 |
- |
- |
105000000.0 |
15 MAKER CHAMBERS 3 NARIMAN POINTMUMBAIMH440021IN |
|
21 |
Y10288775 |
90186876 |
GLOBAL TRUST BANK LIMITED |
25/09/2001 |
- |
- |
50000000.0 |
303-48-3 SARDAR PATEL ROADSECUNDARABADAP500003IN |
|
22 |
Y10288743 |
90186844 |
INDUSTRIAL DEVELOPMENT BANK OT INDIA |
09/04/2001 |
- |
- |
270000000.0 |
IDBI TOWERWTC COMPLEXMUMBAIMH440005IN |
|
23 |
Y10289766 |
90187867 |
GLOBAL TRUST BANK LTD |
01/11/2000 |
- |
- |
50000000.0 |
15 MAKER CHAMBERS3 NARIMAN POINTMUMAIMH400021IN |
|
24 |
Y10288685 |
90186786 |
ICICI LIMITED |
20/09/2000 |
- |
- |
121000000.0 |
ICICI TOWERBANDRA KURALA COMPLEXMUMBAIMH400051IN |
|
25 |
Y10289751 |
90187852 |
ALL AND SINGULAR THE LEASEHOLD LANDS SITUSTE |
27/04/2000 |
- |
- |
80000000.0 |
T 42 IN THE NAGPUR INDUSTRIAL AREANAGPURMHIN |
|
26 |
Z00138763 |
80032075 |
IDBI |
24/03/2000 |
17/11/2005 |
- |
294800000.0 |
IDBI TOWER ,COLABAMUMBAIMH400005IN |
|
27 |
Y10288647 |
90186748 |
INDUSTRIAL INVESTMENT BANK OF INDIA LTD. |
24/03/2000 |
17/11/2005 |
- |
50000000.0 |
EARNEST HOUSENARIMAN POINTMUMBAIMH400021IN |
|
28 |
Y10288499 |
90186600 |
GLOBAL TRUST BANK LTD |
08/08/1998 |
- |
- |
50000000.0 |
MAKER CHAMBERS3NARIMAN POINTMUMBAIMH400021IN |
|
29 |
Y10288426 |
90186527 |
GLOBAL TRUST BANK LTD |
02/01/1998 |
- |
- |
101000000.0 |
MAKER CHAMBERS 3 NARIMAN POINTMUMBAIMH400021IN |
|
30 |
Y10288424 |
90186525 |
ORIENTAL INS COMPANYLTD. |
31/12/1997 |
17/11/2005 |
- |
1900000.0 |
ORIENTAL HOUSEASAF ALI ROADDELHIDL110002IN |
UNSECURED LOANS
|
PARTICULARS |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
|
|
|
|
Sales Tax Deferral |
491.134 |
472.912 |
|
Inter Corporate Deposits
from Related Parties |
57.421 |
49.798 |
|
Long Term Maturities of
Finance Lease Obligations |
64.878 |
108.835 |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
Inter Corporate Deposits
taken from : |
|
|
|
Related Parties |
238.783 |
279.675 |
|
Others |
1099.367 |
1134.867 |
|
Suppliers Credits |
2515.600 |
2003.175 |
|
|
|
|
|
Total |
4467.183 |
4049.262 |
CORPORATE INFORMATION:
The Company is domiciled and incorporated in India under the provision of the Companies Act, 1956 and its shares are listed on the Bombay Stock Exchange ('BSE') and National Stock Exchange of India ('NSE'). The registered office of the Company is situated at F-8, MIDC Industrial Area, Hingna Road, Nagpur-440016, Maharashtra, India and manufacturing facilities are located in the states of Chhattisgarh and Maharashtra, in India.
The Company is engaged in manufacture and supply of pig iron, sponge iron, pellet, steel and Iron & steel casting.
MANAGEMENT DISCUSSION AND ANALYSIS:
A] Financial Performance:
The year continued to be a very challenging one with multiple constraints being faced by the Company including spurt in prices of imported coking coal, increased non coking coal procurement costs due to captive coal mines cancellation by the order of the Hon'ble Supreme Court, lack of sufficient working capital to augment capacities of new Steel making facilities, weak domestic demand for the new Steel making facilities, inability to push for selling price increase in finished rolled products, due to dumping of steel by China, etc. The Company's account also became Non Performing Asset (NPA) with its bankers.
Despite the above challenges, the Company's Gross turnover for the year stood at INR 28477.400 million and has reduced approximately by 3.53% than the previous year's Gross turnover of INR 29518.700 million. The Company was able to record reasonable earnings (EBIDTA). The Company's Earnings Before Interest Depreciation and Tax (EBIDTA) level during the year was higher at INR 3088.600 million as against INR 2546.100 Crores for the previous year.
The Net Loss before Exceptional Items and Tax for the year stood at INR 4951.600 million and Net loss after Tax for
the year stood at INR 4593.000 million. During the year, the Net Worth of the Company has decreased to INR16374.800 million from INR 20978.800 million in the previous year on account of the losses recorded mainly due to increase in finance cost and depreciation on the recently capitalized projects.
B] Share Capital:
During the year under review the Company has not issued any shares including shares with differential voting rights as to dividend, voting or otherwise nor granted stock option or sweat equity.
Segment wise performance for the year is as
under:
i) Steel Plant Division:
Due to overall slowdown in the Steel sector demand and realizations, Gross Turnover of this division during the year has reduced to INR 24349.600 million as against INR 25478.500 million of the previous year. The production levels of the Steel Melt Shop during 2016-17 was at around 137% of the previous year due to increase in capacity by way of addition of new Steel Melt Shop and the production levels of the Rolling Mill was around 108% of the previous year. The Hot Metal production level was around 98% of the previous year. Turnover value has reduced mainly due to reduction in selling prices of metallic and finished steel.
The share of metallics sales value i.e. pig iron & sponge iron was around 30% in 2016-17 which is approximately
9% lower than the previous year's 39%, as the company focused more on the production and sale of value added
steel finished products.
Going forward the Company expects to further increase the production of finished steel in its overall sales by gradually ramping up the capacity utilisation of its new Steel Melt Shop (SMS-II) and Rolling Mills (RM-II). With the imposition of protection measures on certain steel products by the Government of India since last year, the overall steel demand and realisations have witnessed some improvement during the year.
ii) Castings Division:
The Gross revenues from the foundry division has increased to INR 4127.800 million during the year from INR 4040.200 million in the Financial Year 2015-16. The Automotive Castings Sub Division accounted for around 34%, the Centrifugal Castings Sub Division for around 32%, Engineering Castings Sub Division for around 26% and the Construction Casting Sub Division for around 8% of the total Foundry Division's Gross Revenues.
The continued slowdown in the demand from the end user Automotive Commercial Vehicles Segment and Construction Sector continued to affect the performance and realization of the Castings Division. The Division continued in its objectives to focus on better productivity, cost rationalization and improvement in the quality of castings.
C) Restructuring of Term Loans:
The Lenders of the Company under Joint Lending Forum (JLF) mechanism have been deliberating restructuring possibilities & options for resolving the loan servicing default of the Company. The matter is under active consideration of the JLF. Presently the account is NPA with the Banks and is being operated under tagging arrangement with Trust and Retention Account (TRA) and concurrent cash flow monitoring mechanism with the Lead Bank.
D] Projects:
The Company with a view to set up end use projects for its captive coal mines which were although subsequently deallocated, optimize costs, increase the extent of value addition in the long product segment had commenced implementation of various facilities in the State of Chhattisgarh. All the under implementation projects of the Company have been completed except the 3.0 Lacs TPA DRI Plant (Sponge Iron Plant) & its Associated Captive Power Plant at Bilaspur district in Chhattisgarh. The same is under implementation.
E] Industry Outlook, Developments and
Concerns:
As per Leading Sector Analysts, global steel demand is expected to increase by 3% in calendar year 2017 to 1.6 billion tonnes, then rise 1% to 1.62 billion tonnes in calendar year 2018. At the same time, it is expected that global crude steel production will increase by 3% in calendar year 2017 to 1.65 billion tonnes and rise another 1% in calendar year 2018 to 1.67 billion tonnes implying excess of about 50 million tonnes each year. It is projected that global capacity utilization rates will average 86% this year, up 11 percentage points from 2016, before increasing to 89% next year.
In 2016, steel demand recovery was stronger than expected with the upside mostly coming from China. In 2017 and 2018 there may be a cyclical upturn in steel demand with a continuing recovery in the developed economies and an accelerating growth momentum in the emerging and developing economies.
It is expected that Russia and Brazil will finally move out of their recessions. However, China, which accounts for 45% of global steel demand, is expected to return to a more subdued growth rate after its recent short uplift. For this reason, overall growth momentum will remain modest.
India's prospects have brightened due to low oil prices, the reform momentum, lower fiscal and current account deficit and government policies to increase infrastructure and manufacturing output. India's steel demand is expected to increase by 6.1% in calendar year 2017 and by 7.1 % in calendar year 2018 reaching 95.5 MMT in 2018.
Steel industry in India can further increase the momentum of growth in steel exports from the country, benefiting from steel demand in South East Asia and Middle East, which Indian steel companies can take advantage of in the present scenario.
With the estimated demand growth and continued capacity expansion by private and public sector steel companies, India is expected to emerge as the second largest crude steel producer by the end of calendar year 2017. Steel being a Core industry needs to be protected and nurtured to bring it back to good health for which governmental policies will play a pivotal role.
Law and order problems in the Iron Ore Mining belts in the State of Chhattisgarh is still continuing to be a matter of concern for the Company creating serious problems for governmental and social machineries.
This has already delayed operationalization of some of the captive Iron Ore Mines of the Company in those regions. Nevertheless, the Company is making all efforts to start those Mines. During the year, mining from couple of iron ore mines has been commenced by the Company.
Finding market for the products for its new Steel Melt Shop and Rolling Mill and sustained pressure on selling prices amidst subdued demand are the major challenges and areas of concern for the Company.
The analysts predict that despite global overcapacity, potential growth in domestic demand will continue to fuel ambitions in the Indian steel landscape. The National Steel Policy 2017 would also boost the demand scenario of the Indian Steel Sector as the Indian government expects to enhance the present steel production capacity to 300 MMT by 2030-31 and also increase in the per capita consumption to 160 kgs by 2030-31.
STATEMENT
OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST
DECEMBER, 2017
(INR in Million)
|
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
1. |
Income from operations |
|
|
|
|
|
Net Sales (Net or Excise Duty) |
8210.200 |
8324.400 |
25416.000 |
|
|
Other operating Income |
189.000 |
10.500 |
238.300 |
|
|
Total Income from operations (Net) |
8399.200 |
8334.900 |
25654.300 |
|
|
|
|
|
|
|
2. |
Expenses |
|
|
|
|
|
Cost of Materials Consumed |
4110.000 |
4456.400 |
12632.700 |
|
|
Purchases of Stock-in-Trade |
69.900 |
38.600 |
178.400 |
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(127.700) |
578.900 |
652.000 |
|
|
Excise duty |
0.000 |
0.000 |
1002.700 |
|
|
Employee
benefits expense |
548.100 |
456.200 |
1455.500 |
|
|
Finance
Costs |
1687.700 |
1663.100 |
4756.600 |
|
|
Depreciation
and amortisation expense |
686.300 |
640.400 |
1961.000 |
|
|
|
1522.300 |
1042.500 |
3407.700 |
|
|
Other
expenditure |
1633.700 |
920.500 |
4095.400 |
|
|
Total Expenses |
10130.300 |
9796.600 |
30142.000 |
|
|
|
|
|
|
|
3. |
Loss before exceptional Items |
(1731.100) |
(1461.700 |
(4487.700) |
|
4. |
Exceptional
Items |
13.000 |
0.000 |
(0.706) |
|
5. |
Loss before tax |
(1744.100 |
(1461.700 |
(4417.100) |
|
6. |
Tax
expense |
1.500 |
(758.000) |
(984.500) |
|
7. |
Loss for the period |
(1745.600) |
(703.700) |
(3432.600) |
|
8. |
Extraordinary
Items |
0.000 |
0.000 |
0.000 |
|
9. |
Other comprehensive income |
|
|
|
|
10. |
Remuneration
(Gain)/ Loss on defined benefits plans |
4.200 |
4.300 |
12.600 |
|
|
Income
Tax for Earlier Years |
(1.500) |
(1.500) |
(4.400) |
|
|
Total OTHER comprehensive income |
2.700 |
2.800 |
8.200 |
|
|
Total comprehensive income for the period |
(1748.300) |
(706.500) |
(3440.800) |
|
11. |
Paid - up Equity Share Capital (Face value of INR 10/- per share) |
6386.300 |
6386.300 |
6386.300 |
|
|
|
|
|
|
|
12 |
Earnings Per Share (EPS) |
|
|
|
|
|
a) Basic and diluted EPS before exceptional
Items for the period (INR) |
(2.73) |
(1.10) |
(5.37) |
|
|
b) Basic and diluted EPS after exceptional
Items for the period (INR) |
(2.73) |
(1.10) |
(5.37) |
NOTES:
1. The above results have been reviewed by the Audit Committee and approved by the
Board of Directors at their meeting held on 12th February, 2018. The Statutory
Auditors of the Company have carried out a Limited Review of the above
results.
2. The Directorate of Enforcement vide its order dated 9th June, 2017 has provisionally
attached, under sub-section 1 of section 5 of the Prevention of Money
Laundering Act (PMLA), 2002, the plant and machinery under installation at
Dagori integrated steel plant situated at Bilha, Bilaspur (Chhattisgarh) to the
extent of Rs. 20616 lakhs for alleged misuse of coal raised from Gare Palma
IV/4 coal block at Chhattisgarh. The Company had challenged the provisional
order before the adjudicating authority. The Adjudicating Authority vide its
order dated 10th November, 2017, dismissed the appeal filed by the Company and
confirmed the Provisional Attachment Order dated 9th June, 2017. The Company
has filed appeal against the order dated 10th November, 2017 passed by the
Adjudicating Authority, before the Appellate Authority. The matter is fixed for
12th February, 2018 for the first time. The Company has a good case on merits,
is likely to succeed in refuting the allegations and does not expect any
material liability on the Company on this account.
3. Exceptional Items for the quarter and nine months ended 31st December, 2017
represent the amount realised or written off in respect of Company's Coal Mines
at Moitra Coal Block which was cancelled by the Hon'ble Supreme Court of India
during the year 2014.
4. The Company underwent significant financial stress in the last four years
due to cancellation of its three captive coal mines which resulted in
significant viability issues of the end use Iron and Steel making facilities,
payment of additional levy on mined coal as per Hon’ble Supreme Court order,
huge dumping of steel in the country which resulted in the low capacity
utilisation of its new steel making facilities and unavailability of
incremental working capital support due to Reserve Bank of India’s (RBI’s)
Asset Quality review classifying the Company’s accounts as technical
Non-performing Asset from back date effect. Hence the Company had requested its
lenders to restructure its debts.
Subsequently the Debt Restructuring Scheme of the Company’s debts was approved
by the super majority of bankers. The Company has complied with the conditions
of Debt Restructuring Scheme including getting Independent Evaluation Committee
recommendation to the scheme, infusion of stipulated additional funds as
Promoters Contribution as per the scheme and concrete steps were already taken
for conversion of Promoter Companies Unsecured Loans to the Company into Equity
within the RBI stipulated time line of 13th December, 2017.
However on the directions of RBI, which has not agreed to the debt restructuring
scheme being fully implemented within the stipulated time line of 13th
December, 2017, State Bank of India (SBI) has filed an application under
section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the
Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016,
against the Company, claiming that an amount of Rs. 51383 lakhs is in default
as on 30th November, 2017. The matter has been listed for hearing on 13th
February, 2018 before the National Company Law Tribunal, Mumbai. The matter is
currently in pre-admission stage.
Being aggrieved by the non-implementation of the approved Debt Restructuring
Scheme, the Company has filed Writ petition, before the Hon’ble Bombay High
Court, Mumbai, against RBI and the other respondents, raising various questions
of law and challenging various communications issued by RBI from time to time,
which has adversely affected the implementation of the approved Debt
Restructuring Scheme of the Company. In the instant Writ petition, the Company
has sought directions for implementation of the executed Master Restructuring
Agreement (MRA) dated 12th December, 2017. The matter has been fixed for 12th
February, 2018 for hearing before the Hon’ble Bombay High Court.
5. Revenue from operations for periods up to 30th June, 2017 includes excise
duty, which is discontinued effectively from 1st July, 2017 upon implementation
of Goods and Service Tax (GST). In accordance with ‘Ind AS 18 – Revenue’, GST
is not included in Revenue from Operations. In view of the aforesaid change in
indirect taxes, Revenue from Operations for the quarter and nine months ended
31st December, 2017 is not comparable to the corresponding previous
periods.
6. The Company's Project for enhancement of Iron making capacities for its DRI
Plant and Captive Power Plant as part of the Integrated Steel Plant in
Chhattisgarh are facing further time delay and presently the project is not
into active development.
7. The figures for the corresponding previous period have been restated /
regrouped / rearranged / reclassified wherever necessary, to make them
comparable.
SEGMENT WISE REPORTING OF REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE
QUARTER ENDED December 31st, 2017
(INR in Million)
|
Particulars |
Quarter Ended 30.06.2017 |
Quarter Ended 30.06.2017 |
Quarter Ended 30.06.2017 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
1] Segment Revenue |
|
|
|
|
Steel |
7224.900 |
7410.200 |
22513.500 |
|
Iron and Steel
Casting |
1607.900 |
948.300 |
2959.400 |
|
Others |
22.100 |
0.000 |
23.600 |
|
Gross Turnover
|
8254.900 |
8358.500 |
6889.000 |
|
2Less: Inter Segment Revenue |
44.700 |
34.100 |
80.500 |
|
Revenue from Operations |
8210.200 |
8324.400 |
25416.000 |
|
|
|
|
|
|
2] Segment Results (Profit/ Loss Before
Interest and Tax from each segment) |
|
|
|
|
Steel |
55.500 |
184.400 |
429.100 |
|
Iron and Steel
Casting |
(112.800) |
12.600 |
(100.500) |
|
Others |
0.500 |
0.000 |
0.500 |
|
Total |
(56.800) |
197.000 |
329.100 |
|
|
|
|
|
|
Less: Interest and Finance Charges |
1687.700 |
1663.100 |
4756.600 |
|
Other
Un-Allocable Expenditure |
11.400 |
11.100 |
34.900 |
|
Add: unallocated income |
11.800 |
0.155 |
45.300 |
|
Loss before tax |
(1744.100) |
(1461.700 |
(4417.100) |
|
|
|
|
|
|
3] Segment Assets
|
|
|
|
|
Steel |
65003.800 |
65995.400 |
65003.800 |
|
Iron and Steel
Casting |
3211.900 |
3293.900 |
3211.900 |
|
Others |
33.000 |
32.900 |
33.000 |
|
Unallocated |
674.700 |
660.100 |
674.700 |
|
Total Segment Assets |
68923.400 |
69982.300 |
68923.400 |
|
|
|
|
|
|
4] Segment Liabilities |
|
|
|
|
Steel |
4230.500 |
6138.900 |
4530.500 |
|
Iron and Steel
Casting |
445.700 |
403.500 |
445.700 |
|
Others |
0.000 |
0.000 |
0.000 |
|
Unallocated |
51613.200 |
48757.600 |
51013.200 |
|
Total Segment Liabilities |
55989.400 |
55300.000 |
55989.400 |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
GUARANTEES |
|
|
|
Guarantees given by the Company's Bankers (Bank guarantees are provided under contractual / legal obligation) |
240.202 |
181.546 |
|
Corporate Guarantee (Given to Banks against the borrowings taken by one of the Associate Company) |
118.100 |
118.100 |
|
LETTER OF CREDIT
OUTSTANDING |
|
|
|
Letters of Credit opened in favour of Suppliers (Cash flow is expected on receipt of material from suppliers) |
731.539 |
600.203 |
|
Liability in respect of Bills Discounted |
883.590 |
974.317 |
|
Demands not acknowledged
as debts |
|
|
|
Disputed Excise Duty and Service Tax |
59.562 |
155.023 |
|
Disputed Sales Tax |
130.959 |
153.591 |
|
Disputed Customs Duty |
19.107 |
10.000 |
|
Other Disputed Demands (Mainly related to demand of Cess on Power, Electricity Duty and Stamp Duty) |
742.582 |
993.970 |
|
Third Party Claims (Matters are pending before various forums) |
34.829 |
24.300 |
|
Total |
987.039 |
1336.884 |
FIXED ASSETS:
Tangible Assets
·
Land Freehold
·
Buildings
·
Railway Siding
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
· Leasehold Land
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 65.10 |
|
UK Pound |
1 |
INR 90.45 |
|
Euro |
1 |
INR 79.59 |
INFORMATION
DETAILS
|
Information
Gathered by : |
AKS |
|
|
|
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
ARC |
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.