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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

497103

Report Date :

12.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

USHA MARTIN LIMITED

 

 

Registered Office :

2A, Shakespeare Sarani, ‘Mangal Kalash’, Kolkata-700071, West Bengal

Tel. No.:

91-33-39800300

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

22.05.1986

 

 

Com. Reg. No.:

21-091621

 

 

Capital Investment / Paid-up Capital :

INR 305.400 Million

 

 

CIN No.:

[Company Identification No.]

L31400WB1986PLC091621

 

 

IEC No.:

[Import-Export Code No.]

2188000633

 

 

TIN No.:

19433673066

 

 

PAN No.:

[Permanent Account No.]

AAACU2339M 

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

GSTN :

[Goods & Service Tax Registration No.]

19AAACU2339M1Z0

 

 

Legal Form :

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

 

 

Line of Business :

The Subject is engaged in the Manufacturing of Speciality Steel and value added Steel Products. (Registered Activity)

 

 

No. of Employees :

1737 (Approximately)

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated in the year 1986. It is engaged in the manufacturing of specialty steel and value added steel products.


For the financial year 2017, the company has reported dip in its revenue by 5.39% as compared to the previous year along with operational loss.


Rating takes into consideration sufficient net worth base, average share price quote on stock market and long operational track record of the company.


Rating strength is partially offset due to high debt of the company along with delay in planned equity infusion and monetisation of non-core assets along with delay in receipt of dues relating to deallocated coal mines.


Payment seems to be slow and delayed.


In view of aforesaid, the company can be considered for business dealings with some caution.


Note: As per the current press release, a row between two branches of the Jhawar family that founded Kolkata-based Usha Martin has intensified, with one side accusing the other of financial irregularities. Basant Jhawar, 82, and his son Prashant Jhawar have filed complaints at the National Company Law Tribunal and the Calcutta High court in pursuit of their claim. They have alleged that Rajeev Jhawar, Basant Jhawar’s nephew, orchestrated their dismissal from Usha Martin in April last year, although both remain on the board of the company.

NOTES :

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

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Short term borrowing : A4+

Rating Explanation

Minimal degree of safety and very high credit risk

Date

29.11.2017

 

 

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 12.03.2018

 

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 DENIED

 

Management non-cooperative (Tel No.: 91-33-71006300/ 91-11-23315156)

Mobile No.: 91-7888908010 – Switched Off

 

LOCATIONS

 

Registered/ East Regional Office :

2A, Shakespeare Sarani, ‘Mangal Kalash’, Kolkata-700071, West Bengal, India

Tel. No.:

91-33-39800300

Mobile No.:

91-7888908010 (Mr. Vikas)

Fax No.:

91-33-22829029/ 39800500/ 39800400

E-Mail :

shampa_ghoshray@ushamartin.co.in

investor@ushamartin.co.in 

Website :

http://www.ushamartin.com

 

 

North Regional Office :

701, ‘Surya Kiran’, 19, Kasturba Gandhi Marg, New Delhi – 100001, India

Tel. No.:

91-11-23315156/ 57/ 58/ 23711232/ 23715220

Fax No.:

91-11-23320723/ 5586

E-Mail :

marketing-north@ushamartin.com

 

 

South Regional Office :

Plot No. L9 (1), Phase-II, SIPCOT Industrial Park, Sriperumbudur, Kancheepuram  602105, Tamilnadu, India

Tel. No.:

91-44-37175100 (24 Lines)

Fax No.:

91-44-37175200

E-Mail :

marketing-south@ushamartin.com

 

 

West Regional Office :

168, CST Road, Agarwal Industrial Estate, Kalina, Santa Cruz (East), Mumbai - 400098, Maharashtra, India 4

Tel. No.:

91-22-30645400

Fax No.:

91-22-26526774

E-Mail :

marketing-west@ushamartin.com

 

 

Branch Office:

Village Bhud, Vardhman Road, Mauja Bhud Tehsil Baddi, District Solan, Himachal Pradesh, India

 

 

India Works/ Mines :

Steel Business

 

·         UAS Division, Adityapur, Jamshedpur-831001, Jharkhand, India

·         Iron Ore Mines, Barajamda-833221, Jharkhand, India

 

Wire Rope Business

·         Tatisilwai, Ranchi – 835 103, Jharkhand, India

 

Wire and Wire Rope Division-North

 

·         Hoshiarpur– 146024, Punjab, India

·         Punjab Speciality Product Division – South

·         Sri Perumbudur– 602105, Tamilnadu, India 

 

 

Overseas Works :

·         Navanakoran Industrial Estate, Thailand (Usha Siam Steel Industries)

·         Jebel Ali Free Zone, Dubai, UAE (Brunton Wolf Wire Ropes)

·         Workshop, Nottinghamshire, UK (Usha Martin UK)

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Rajeev Jhawar

Designation :

Managing Director

Address :

Arjun Enclave, Flat No. 4C, 12C, Judges Court Road, Kolkata-700027, West Bengal, India

Date of Appointment :

19.05.1998

DIN No.:

00086164

 

 

Name :

Mr. Pravin Kumar Jain

Designation :

Managing Director

Address :

2C, 14/2, Burdwan Road, Siddhartha Building, Alipore, Kolkata-700027, West Bengal, India

Date of Appointment :

27.07.2010

DIN No.:

02583519

 

 

Name :

Mr. Salil Singhal

Designation :

Director

Address :

Singhal Farm House, Near Airforce Station, Rajokri, New Delhi-110038, India

Date of Appointment :

12.05.2009

DIN No.:

00006629

 

 

Name :

Mr. Jitender Balakrishnan

Designation :

Director

Address :

208, Tower-2, Casa Grande, Senapati Bapat Marg, Lower Parel, Mumbai-400013, Maharashtra, India

Date of Appointment :

10.06.2010

DIN No.:

00028320

 

 

Name :

Mr. Brij Kishore Jhawar

Designation :

Director

Address :

Arjuna Enclave, Flat No.4C, 12C, Judges Court Road, Kolkata-700027, West Bengal, India

Date of Appointment :

27.10.2004

DIN No.:

00086200

 

 

Name :

Mr. Basant Kumar Jhawar

Designation :

Director

Address :

51F, Gariahat Road, Kolkata-700019, West Bengal, India

Date of Appointment :

19.05.1998

DIN No.:

00086237

 

 

Name :

Mr. Partha Sarathi Bhattacharyya

Designation :

Director

Address :

901, Evora Fortaleza, Kalyani Nagar, Pune-411006, Maharashtra, India

Date of Appointment :

31.07.2014

DIN No.:

00329479

 

 

Name :

Mr. Prashant Jhawar

Designation :

Director

Address :

2a, Stormont Road, London 0N64NL GB

Date of Appointment :

24.06.1992

DIN No.:

00353020

 

 

Name :

Mr. Ghyanendra Nath Bajpai

Designation :

Director

Address :

131, Shaan Apartments, K.D. Marg, Prabhadevi, Mumbai-400028, Maharashtra, India

Date of Appointment :

18.03.2010

DIN No.:

00946138

 

 

Name :

Venkatachalam Ramakrishnaiyer

Designation :

Nominee Director

Address :

304, 3rd Floor, 103-BI, Sumeet Enclave, St. Dnyanesh Road, Panchpakhadi, Thane –West, Thane-400602, Maharashtra, India

Date of Appointment :

04.11.2015

DIN No.:

02194830

 

 

Name :

Mrs. Aarthi Ramakrishnan

Designation :

Additional Director

Address :

A1603, Raheja Vivarea, Sane Guruji Marg Jacob Circle, Byculla Mumbai - 400011, Maharashtra, India

Date of Appointment :

09.12.2016

DIN No.:

07672826

 

 

Name :

Mr. Mukesh Rambihari Rohatgi

Designation :

Additional Director

Address :

D-190, Sector-41, G.B. Nagar, Noida - 201303, Uttar Pradesh, India 

Date of Appointment :

09.12.2016

DIN No.:

00136067

 

 

KEY EXECUTIVES

 

Name :

Mr. Rohit Nanda

Designation :

Chief Finance Office

Address :

C-803, Wembley Estate, Sector 49-50, Gurugram-122018, Haryana, India

Date of Appointment :

01.07.2016

PAN No:

AAIPN8292R

 

 

Name :

Shampa Ghosh Ray

Designation :

Company Secretary

Address :

35A, Old Ballygunj, First Lane, Kolkata-700019, West Bengal, India

Date of Appointment :

08.08.2016

PAN No:

AGLPR9574R

 

 

MAJOR SHAREHOLDERS

 

AS ON 31.12.2017

 

Category of shareholder

Total nos. shares held

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

(A) Promoter & Promoter Group

151996900

50.66

(B) Public

148035510

49.34

Grand Total

281288830

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 %

A1) Indian

 

Individuals/Hindu undivided Family

5812267

1.94

Rajeev Jhawar

1561741

0.52

Brij Kishore Jhawar

945865

0.32

Stuti Raghav Agarwalla

558330

0.19

Anupama Jhawar -Trustee of Anupriya Welfare Trust

550359

0.18

Amisha Jhawar

518500

0.17

Susmita Jhawar

438195

0.15

Nidhi Rajgarhia

331139

0.11

Shanti Devi Jhawar

279243

0.09

Uma Devi Jhawar

246415

0.08

Shreya Jhawar

213500

0.07

Basant Kumar Jhawar

82310

0.03

Akshay Goenka

37210

0.01

Madhushree Goenka

49460

0.02

Any Other (specify)

86611935

28.87

UMIL Share & Stock Broking Services (P) Ltd.

38888369

12.96

Peterhouse Investments India Limited

20767330

6.92

Usha Martin Ventures Limited

20627588

6.88

Brij Investments Private Limited

5111823

1.70

Jhawar Venture Management Private Limited

859825

0.29

Prajeev Investments Limited

357000

0.12

Sub Total A1

92424202

30.80

A2) Foreign

0.00

Individuals (NonResident Individuals/ Foreign Individuals)

2492983

0.83

Prashant Jhawar

2060788

0.69

Apurav Jhawar

395245

0.13

Anupama Jhawar

36950

0.01

Any Other (specify)

38336135

19.02

Peterhouse Investments Limited

23971455

10.97

Kenwyn Overseas Limited

14364680

8.06

Sub Total A2

40829118

19.86

A=A1+A2

133253320

50.66

 

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 %

B1) Institutions

 

 

Mutual Funds/

282826

0.09

Foreign Portfolio Investors

25386364

8.46

Bridge India Fund

8840100

2.95

Aquarius India Opportunities Fund

8600000

2.87

The Indiaman Fund (Mauritius) Limited

6258733

2.09

Financial Institutions/ Banks

74199

0.02

Insurance Companies

8406416

2.80

LIFE INSUREANCE CORPORATION OF INDIA

4333005

1.44

GENERAL INSURANCE CORPORATION OF INDIA

3916560

1.31

Sub Total B1

34149805

11.38

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

45384779

15.13

Individual share capital in excess of INR 0.200 million

23283784

7.76

MITESH N MEHTA

13000000

4.33

Any Other (specify)

45217142

15.07

Bodies Corporate

42552460

14.18

JMS MINING SERVICES PRIVATE LIMITED

4532612

1.51

Foreign Individuals or NRI

2664682

0.89

Sub Total B3

113885705

37.96

B=B1+B2+B3

148035510

49.34

 

Statement showing shareholding pattern of the Non Promoter- Non Public shareholder

 

Category & Name of the Shareholders(I)

No. of shareholder(III)

No. of fully paid up equity shares held(IV)

Nos. of shares underlying Depository Receipts(VI)

Total no. shares held(VII = IV+V+VI)

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)(VIII)

Number of equity shares held in dematerialized form(XIV)(Not Applicable)

C1) Custodian/DR Holder

0

0

0.00

Custodian/DR Holder

1

0

4709370

4709370

0.00

4709370

Sub Total C1

1

0

4709370

4709370

0.00

4709370

C2) Employee Benefit Trust

0

0

0.00

C= C1+C2

1

0

4709370

4709370

0.00

4709370

 

                                                                                                                                                     

BUSINESS DETAILS

 

Line of Business :

The Subject is engaged in the Manufacturing of Speciality Steel and value added Steel Products. (Registered Activity)

 

 

Products :

NIC Code No.

 

Product Description

3313

Bars

3310

Wire Ropes, Strands including Locked Coil Wire Ropes

3302

Wire Rods

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

1737 (Approximately)

 

 

Bankers :

·         State Bank of India

·         Axis Bank Limited

·         ICICI Bank Limited, Zonal Office 3A, Gurusaday Road, Kolkata-700019, West Bengal, India

·         HDFC Bank Limited

·         IndusInd Bank Limited

·         Bank of Baroda

·         RBL Bank Limited

·         Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre World Trade Centre Complex, Cuffe Parade Mumbai-400005, Maharashtra, India

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term loan from financial institutions (Rupee loans)

2014.900

3099.300

Term loan from banks (Rupee loans)

25152.200

21625.300

External commercial borrowings from bank

0.000

3312.700

Short-term borrowings

 

 

Loans repayable on demand

3185.100

4532.400

Working capital loans from banks

1299.500

400.000

Buyer’s credit from banks

1629.200

2811.800

Total

33280.900

35781.500

Long-term Borrowings

Nature of security

 

A These are secured by a first pari-passu charge by hypothecation over all the movable fixed assets (present and future) and also a first pari-passu charge by mortgage over land and other immovable properties (present and future) of the Company excluding the assets exclusively charged to other lenders

 

B These are secured by a second charge on entire current assets of the Company (present and future), pari-passu with other term lenders C Personal guarantee of Mr. Rajeev Jhawar, Managing Director of the Company. D Pledge of promoter’s holding to the extent of 26% equity in the Company on pari-passu basis (13% equity each pledged on October 19, 2016 and May 2, 2017 respectively) Secured loan - terms of repayment

 

(a) Rupee term loan from a financial institution amounting to INR1624.700 million (31st March, 2016: INR 1724.300 million, 1st April, 2015: INR 1799.200 million) is repayable in three quarterly installments from 1st April, 2018 to 1st October, 2018. Interest is payable on monthly basis at long-term minimum lending rate plus 1.85% p.a.

 

(b) Rupee term loan from a financial institution amounting to INR390.200 million (31st March, 2016: INR Nil, 1st April, 2015: INR Nil) is repayable in fourty quarterly installments from 1st January, 2020 to 1st October, 2029. Interest is payable on monthly basis at long-term minimum lending rate plus 2.00% p.a.

 

(c) Rupee term loan from a bank amounting to INR 1874.000 million (31st March, 2016 : INR 1873.700 million, 1st April, 2015 : INR 2373.300 million) is repayable in sixteen quarterly installments from 29th June, 2018 to 29th March, 2022. Interest is payable on monthly basis at base rate of the bank plus 2.00% p.a.

 

(d) Rupee term loan from a bank amounting to INR 1199.200 million (31st March, 2016: INR 1199.200 million, 1st April, 2015: INR 1461.400 million) is repayable in eighteen quarterly installments from 30th June, 2018 to 30th September, 2022. Interest is payable on monthly basis at base rate of the bank plus 2.00% p.a.

 

(e) Rupee term loan from a bank amounting to INR 646.700 million (31st March, 2016: INR 646.200 million, 1st April, 2015 : INR 549.700) is repayable in twenty eight quarterly installments from 31st March, 2019 to 31st December, 2025. Interest is payable on monthly basis at one year marginal cost of fund lending rate (MCLR) of the bank plus 2.85% p.a.

 

(f) Rupee term loan from a bank amounting to INR 2062.000 million (31st March, 2016: INR 2249.500 million, 1st April, 2015 : INR 23,74.300 million) is repayable in sixteen quarterly installments from 30th June, 2018 to 31st March, 2022. Interest is payable on monthly basis at one year marginal cost of fund lending rate of the bank plus 2.40% p.a.

 

(g) Rupee term loan from a bank amounting to INR 4935.000 million (31st March, 2016 : INR 5206.800 million, 1st April, 2015 : INR 5478.300 million) is repayable in twenty three quarterly installments from 30th June, 2018 to 31st December, 2023. Interest is payable on monthly basis at one year marginal cost of fund lending rate of the bank plus 2.90% p.a.

 

(h) Rupee term loan from a bank amounting to INR Nil (31st March, 2016 : INR Nil, 1st April, 2015 : INR 799.800 million) was repayable in two quarterly installments from 30th June, 2016 to 30th September, 2016. Interest was payable on monthly basis at base rate of the bank plus 1.55% p.a.

 

(i) Rupee term loan from a bank amounting to INR 198.300 million (31st March, 2016 : INR 159.900 million, 1st April, 2015 : INR 319.900 million) is repayable in twenty eight quarterly installments from 31st March, 2019 to 31st December, 2025. Interest is payable on monthly basis 11.55% p.a.

 

(j) Rupee term loan from a bank amounting to INR 11,119 million (31st March, 2016 : INR1249.900 million, 1st April, 2015 : INR1387.500 million) is repayable in twenty two quarterly installments from 30th April, 2018 to 31st July, 2023. Interest is payable on monthly basis at one year marginal cost of fund lending rate of the bank plus 1.75% p.a.

 

(k) Rupee term loan from a bank amounting to INR 1319.800 million (31st March, 2016 : INR 1403.600 million, 1st April, 2015 : INR 14,77.900 million) is repayable in ninteen quarterly installments from 30th June, 2018 to 31st December, 2022. Interest is payable on monthly basis at base rate of the bank plus 1.75% p.a.

 

(l) Rupee term loan from a bank amounting to INR 982.900 million (31st March, 2016 : INR 8,60.400 million, 1st April, 2015 : INR Nil) is repayable in twenty eight quarterly installments from 31st March, 2019 to 31st December, 2025. Interest is payable on monthly basis at base rate of the bank plus 2.00% p.a.

 

(m) Rupee term loan from a bank amounting to INR 487.000 million (31st March, 2016 : INR Nil, 1st April, 2015 : INR Nil) is repayable in twenty eight equal quarterly installments from 31st March, 2019 to 31st December, 2025. Interest is payable on monthly basis at one year marginal cost of fund lending rate of the bank plus 1.85% p.a.

 

(n) Rupee term loan from a bank amounting to INR 1376.300 million (31st March, 2016 : INR 1371.500 million, 1st April, 2015 : INR Nil) is repayable in twenty four quarterly installments from 30th June, 2018 to 31st March, 2024. Interest is payable on monthly basis at base rate of the bank plus 1.65% p.a.

 

(o) Rupee term loan from a bank amounting to INR 8959.100 million (31st March, 2016 : INR 5404.600 million, 1st April, 2015 : INR Nil) is repayable in twenty eight quarterly installments from 31st March, 2019 to 31st December, 2025. Interest is payable on monthly basis at one year marginal cost of fund lending rate of the bank plus 2.50% p.a.

 

(p) Outstanding balances of loans and terms of repayment as indicated in (a) to (o) above are exclusive of current maturities of such loans as disclosed in Note 18(iii).

 

Auditors :

 

Name :

S.R. Batliboi and Co. LLP

Chartered Accountants

Address :

Kolkata, West Bengal, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries :

·         Usha Martin International Limited (UMIL)

·         Usha Martin UK Limited (UMUK) @

·         European Management and Marine Corporation Limited (EMMC) @

·         Brunton Shaw UK Limited (BSUK) @

·         De Ruiter Staalkabel B.V. (De Ruiter) @

·         Usha Martin Europe B.V. (UMEBV) @

·         Usha Martin Italia S.R.L (UMISRL) @

·         Usha Martin Singapore Pte. Limited (UMSPL)

·         Usha Martin Vietnam Company Limited (UMVCL) @

·         Usha Martin Australia Pty Limited (UMAUS) @

·         P. T. Usha Martin Indonesia (PTUMI) @

·         Usha Martin China Company Limited (UMCCL) @

·         Usha Martin Americas Inc. (UMAI)

·         Usha Siam Steel Industries Public Company Limited (USSIL)

·         Brunton Wolf Wire Ropes FZCo. (BWWR)

·         UM Cables Limited (UMCL)

·         Usha Martin Power and Resources Limited (UMPRL)

·         Bharat Minex Private Limited (BMPL)

·         Gustav Wolf Speciality Cords Limited (GWSCL)

 

 

Joint Venture :

·         Pengg Usha Martin Wires Private Limited (PUMWPL)

·         CCL Usha Martin Stressing Systems Limited (CCLUMSSL)

·         Dove Airlines Private Limited (DAPL) (Ceases to JV from 4th August, 2016) Tesac Usha Wirerope Company Limited (TUWCL)

 

 

Substantial interest in the voting power of the entity :

UMI Special Steel Limited (UMISSL) (under liquidation)

 

 

Other Related Party :

Usha Martin Employee Provident Fund Trust

@ Represents stepdown subsidiaries

 

CAPITAL STRUCTURE

 

As on 21.09.2017

 

Authorised Capital : INR 1000.000 Million

 

Issued, Subscribed & Paid-up Capital : INR 304.742 Million

 

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000000

Equity Shares

INR 1/- each

INR 500.000 Million

10000000

Redeemable Cumulative Preference Shares

INR 50/- each

INR 500.000 Million

 

Total

 

INR 1000.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

304741780

Equity Shares

INR 1/- each

INR 304.700 Million

 

Add: Shares Forfeited

 

INR 0.700 Million

 

Total

 

INR 305.400 Million

 

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

 

Particulars

As on 31.03.2017

Numbers

Amount in INR In Million

No. of Equity shares outstanding at the beginning and end of the year

304741780

304.700

Amount of Equity shares outstanding at the beginning and end of the year

304741780

304.700

 

b) 32083550 (31st March, 2016: 3,5833550, 1st April, 2015 : 3,5833550) equity shares are represented by Global Depository Receipts (GDRs) out of above paid up equity shares

 

(c) Rights, preference and restrictions attached to shares issued

 

The Company has only one class of equity shares having par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share (except in case of GDRs). The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

 

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

 

(d) Details of shares held by shareholders holding more than 5 % of the aggregate shares in the Company:

 

Particulars

As on 31.03.2017

Equity shares of INR 1 each fully paid

Number of shares

% holding in the class

UMIL Shares and Stock Broking Services Limited

38888369

12.76%

Usha Martin Ventures Limited

20627588

6.77%

Peterhouse Investments Limited

18971455

6.23%

Peterhouse Investments India Limited

20767330

6.81%

Deutsche Bank Trust Company Americas

32083550

10.53%

 

As per records of the Company, including its register of shareholders / members and other declaration received from shareholders, the above shareholding represents legal ownership of shares.

 

(e) No shares have been allotted without payment of cash or by way of bonus shares during the period of five years immediately preceding the balance sheet date.

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

305.400

305.400

305.400

(b) Reserves & Surplus

4251.900

7817.500

11659.000

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

300.000

Total Shareholders’ Funds (1) + (2)

4557.300

8122.900

12264.400

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

27280.100

28160.100

26002.700

(b) Deferred tax liabilities (Net)

0.000

0.000

756.200

(c) Other long term liabilities

206.500

206.400

1046.000

(d) long-term provisions

527.700

468.300

271.800

(e) Government grants

304.100

315.100

0.000

Total Non-current Liabilities (3)

28318.400

29149.900

28076.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

8187.700

9176.100

7448.500

(b) Trade payables

17024.400

14095.600

16202.100

(c) Other current liabilities

9399.200

8055.400

8274.900

(d) Short-term provisions

38.100

75.700

189.000

(e) Government grants

11.000

11.000

0.000

Total Current Liabilities (4)

34660.400

31413.800

32114.500

 

 

 

 

TOTAL

67536.100

68686.600

72455.600

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

44816.700

47383.800

48811.000

(ii) Intangible Assets

410.500

148.100

24.400

(iii) Capital work-in-progress

446.900

448.100

391.900

(iv) Intangible assets under development

0.000

232.000

98.400

(b) Non-current Investments

1506.500

1539.100

1677.400

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

107.400

101.600

315.900

(e) Other Non-current assets

1260.200

977.400

3.900

(f) Advance income tax assets (net)

341.200

418.900

0.000

Total Non-Current Assets

48889.400

51249.000

51322.900

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

10086.200

9788.000

13167.600

(c) Trade receivables

5440.600

4534.200

3249.300

(d) Cash and cash equivalents

46.400

40.000

393.300

(e) Short-term loans and advances

11.100

21.500

3427.500

(f) Other current assets

2403.400

2499.400

895.000

(g) Assets held for sale

659.000

554.500

0.000

Total Current Assets

18646.700

17437.600

21132.700

 

 

 

 

TOTAL

67536.100

68686.600

72455.600

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

32465.400

34317.900

37460.500

 

Other Income

1167.600

343.600

386.800

 

TOTAL

33633.000

34661.500

37847.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

14277.700

13804.400

12383.700

 

Purchases of Stock-in-Trade

533.300

303.100

577.500

 

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

25.200

1878.100

(660.500)

 

Employees benefits expense

2348.700

2301.100

2398.800

 

Other expenses

11870.000

13159.000

16741.800

 

Adjustment for items capitalised and departmental orders for own consumption

(48.300)

(37.600)

(57.800)

 

Exceptional items

0.000

0.000

1001.600

 

TOTAL

29006.600

31408.100

32385.100

 

 

 

 

 

 

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

4626.400

3253.400

5462.200

 

 

 

 

 

Less

FINANCIAL EXPENSES

5490.100

5311.400

5073.900

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(863.700)

(2058.000)

388.300

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

2685.800

2731.100

3830.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(3549.500)

(4789.100)

(3441.700

 

 

 

 

 

Less

TAX

0.000

(594.200)

(517.600)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(3549.500)

(4194.900

(2924.100)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

1150.386

3776.700

6772.600

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

(11.65)

(13.77)

(9.60)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

5597.800

4364.500

3397.000

Cash generated from operations

6009.300

7669.200

6482.700

Net cash flows from (used in) operations

6038.000

7664.300

6439.700

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

 (Unaudited)

30.09.2017

 (Unaudited)

31.12.2017

 (Unaudited)

 

1st  Quarter

2nd  Quarter

3rd Quarter

Net Sales

10431.700

9535.900

9873.00

Total Expenditure

9518.000

8547.400

8890.200

PBIDT (Excl OI)

913.700

988.500

982.800

Other Income

143.100

259.400

81.200

Operating Profit

1056.800

1247.900

1064.000

Interest

1364.200

1427.600

1504.600

Exceptional Items

NA

NA

NA

PBDT

(307.400)

(179.700)

(440.600)

Depreciation

675.600

688.200

665.400

Profit Before Tax

(983.000)

(867.900)

(1106.000)

Tax

NA

NA

NA

Provisions and contingencies

NA

NA

NA

Profit After Tax

(983.000)

(867.900)

(1106.000)

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

(983.000)

(867.900)

(1106.000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

61.17

48.23

31.66

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

5.97

7.57

11.53

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

419.55

364.69

456.27

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.46

0.33

0.41

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.10

0.07

0.11

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

1.00

0.93

0.85

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

9.01

5.13

3.00

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

7.61

3.87

2.62

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

10.02

5.94

4.02

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

0.84

0.61

1.08

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

 ((PAT / Sales) * 100)

%

(10.93)

(12.22)

(7.81)

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

(5.26)

(6.11)

(4.04)

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

(77.89)

(51.64)

(23.84)

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.54

0.56

0.66

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.25

0.24

0.25

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.07

0.12

0.17

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

134.46

136.54

120.66

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.54

0.56

0.66

 

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

 

STOCK PRICES

 

Face Value

INR 1.00/-

Market Value

INR 20.10/-

 

 

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

305.400

305.400

305.400

Reserves & Surplus

11659.000

7817.500

4251.900

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

300.000

0.000

0.000

Net worth

12264.400

8122.900

4557.300

 

 

 

 

long-term borrowings

26002.700

28160.100

27280.100

Short term borrowings

7448.500

9176.100

8187.700

Current Maturities of Long term debt

3397.000

4364.500

5597.800

Total borrowings

36848.200

41700.700

41065.600

Debt/Equity ratio

3.004

5.134

9.011

 

 

 

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

37460.500

34317.900

32465.400

 

 

(8.389)

(5.398)

                                                   

 

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

37460.500

34317.900

32465.400

Profit/ (Loss)

(2924.100)

(4194.900)

(3549.500)

 

(7.81%)

(12.22%)

(10.93%)

 

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

305.400

305.400

(b) Reserves & Surplus

 

9143.800

13228.800

(c) Money received against share warrants

 

0.000

 

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

(3) Non-Controlling Interest

 

339.400

343.100

Total Shareholders’ Funds

 

9788.600

13877.300

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

28507.700

29974.800

(b) Deferred tax liabilities (Net)

 

137.900

246.500

(c) Other long term liabilities

 

209.300

206.400

(d) long-term provisions

 

644.900

555.100

(g) Government Grants

 

304.100

315.100

Total Non-current Liabilities

 

29803.900

31297.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

9528.500

10376.500

(b) Trade payables

 

18389.800

15480.400

(c) Other current liabilities

 

9753.400

8352.300

(d) Short-term provisions

 

77.900

107.000

(e) Government Grants

 

11.000

11.000

Total Current Liabilities

 

37760.600

34327.200

 

 

 

 

TOTAL

 

77353.100

79502.400

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

49248.800

52310.900

(ii) Intangible Assets

 

435.900

160.500

(iii) Capital work-in-progress

 

1209.100

1236.000

(iv) Intangible assets under development

 

0.000

231.900

(v) Goodwill on Consolidation

 

552.200

552.200

(b) Non-current Investments

 

0.500

0.500

(c) Deferred tax assets (net)

 

70.400

142.500

(d)  Long-term Loan and Advances

 

13.300

7.000

(e) Other Non-current assets

 

1704.100

1444.200

(f) Advance income tax assets (net)

 

345.700

438.500

Total Non-Current Assets

 

53580.000

56524.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

13090.800

12937.000

(c) Trade receivables

 

6826.400

6154.000

(d) Cash and cash equivalents

 

509.500

554.800

(e) Short-term loans and advances

 

90.900

24.300

(f) Other current assets

 

2596.500

2753.600

(g) Assets held for sale

 

659.000

554.500

Total Current Assets

 

23773.100

22978.200

 

 

 

 

TOTAL

 

77353.100

79502.400

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

38819.400

41122.400

 

Other Income

 

1199.100

325.100

 

TOTAL

 

40018.500

41447.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

16672.500

17251.500

 

Purchases of Stock-in-Trade

 

1249.500

343.500

 

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

 

273.500

2006.800

 

Employees benefits expense

 

3739.700

3733.100

 

Other expenses

 

13044.900

14417.400

 

Adjustment for items capitalised and departmental orders for own consumption

 

(54.900)

(39.600)

 

TOTAL

 

34925.200

37712.700

 

 

 

 

 

 

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

 

5093.300

3734.800

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

5642.400

5466.300

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

(549.100)

(1731.500)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

2999.800

3079.800

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

(3548.900)

(4811.300)

 

 

 

 

 

Less

TAX

 

46.300

(547.200

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

(3595.200)

(4264.100

 

 

 

 

 

Add

Share of profit /(loss) of joint ventures

 

19.600

(19.4000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER SHARE OF PROFIT / (LOSS) OF JOINT VENTURES

 

(3575.600)

(4283.500)

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

(11.78)

(14.10)

 

 

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

No

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

 

COMPANY OVERVIEW

 

The Company is a public limited company domiciled in India and has its registered office at 2A, Shakespeare Sarani, Kolkata - 700071. Its equity shares are listed on two recognised stock exchanges in India and its GDRs are listed on stock exchange in Luxembourg. The Company is engaged in the manufacturing of speciality steel and value added steel products. The Company caters to both domestic and international markets

 

 

MANAGEMENT DISCUSSION & ANALYSIS

 

Economic and Industry Overview

 

The World Steel Association forecasts that global steel demand will increase by 1.3% to 1,535.2 MT in 2017, following growth of 1.0% in 2016. In 2018, it is forecasted that global steel demand will grow by 0.9% and will reach 1,548.5 MT. In 2017 and 2018, steel demand is expected to see a cyclical upturn with a continuing recovery in the developed economies and an accelerating growth momentum in the emerging and developing economies. 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

 

Global economy is gaining strength, but uncertainty escalates

 

The risk of global recession is receding and economic performance improving across most regions. A number of geopolitical changes still create some concern. US policy uncertainties, Brexit, the rising populist wave in current European elections, potential retreat from globalisation and free trade under the pressure of rising nationalism adds a new dimension of uncertainty in investment environments.

 

Oil and other commodities

 

The pickup in oil prices in 2016 helped the fiscal position of oil producing countries. In 2017-18 oil prices are expected to show a moderate gain but any spike in oil prices to the levels seen in 2010-12 seems unlikely despite the recent OPEC agreement on oil production cuts. The mildly rising oil prices may stimulate investment in economies worldwide

 

Sector wise Outlook

 

The automotive sector has been the top performer among key steel using sectors thanks to the consumption driven recovery. The construction, building and infrastructure sector, which accounts for 50% of global steel use, has been showing a divided picture between the developing and developed economies.

 

This sector has been a major driver for steel demand in the developing countries driven by urbanisation, but activity in the developed economies since the 2008 financial crisis has been more subdued.

 

Depression in shipbuilding activities is expected to continue for some time given the global glut in shipping capacity

 

Developed world

 

United States is expected to continue to lead growth in the developed world in 2017-18 related to fiscal stimuli and rising infrastructure spending. However, a rebound of investments in the oil and gas sector may be limited given the increased efficiency of shale producers.

 

Steel demand in the developed economies will increase by 0.7 % in 2017 and 1.2 % in 2018.

 

The Russian and Brazilian economies are stabilising and expected to show modest growth in 2017. After the demonetisation shock, the Indian economy is growing fast now. The ASEAN countries are expected to demonstrate solid growth in 2017-18.

 

Steel demand in the emerging and developing economies excluding China, which accounts for 30% of world total, is expected to grow by 4.0% in 2017 and then 4.9% in 2018.

 

India

 

Steel production and consumption in India is likely to remain higher in 2017-18 backed by an increase in infrastructure allocation in the Budget.

 

The National Steel Policy 2017 released by the Government, also aims to increase steel production. The New Steel Policy, 2017 aspires to achieve 300MT of steel-making capacity by 2030. This would translate into additional investment of Rs. 10 lakh Crore by 2030-31. The Policy seeks to increase per capita steel consumption to the level of 160 Kgs by 2030 from existing level of around 60 Kg.

 

For the infrastructure push, expenditure for transport sector has been raised to INR 0.64 trillion, taking it up to a total of INR 2.4 trillion in Union Budget for 2017-18. Around INR 1.31 trillion of capital expenditure is assigned towards Railways. This will clearly have a large effect on the demand for steel and the metals.

 

The budget also focuses on housing with schemes such as housing for all by 2022, Smart Cities etc. which is expected to revive domestic steel demand as it will push up demand for construction grade steel particularly those for roofing purposes.

 

Expectations of normal monsoon will further generate demand from agricultural sector.

 

All these factors in turn will generate multiplier effect in economy and especially for the transport sector. Automobile demand will show growth of 7-9% in 17-18 due to all these factors as per SIAM.

 

Review of Operations

 

The turnover for the year was INR 38819.400 Million on consolidated basis and INR 32465.400 Million on standalone basis as compared to INR 41122.400 Million and INR 34317.900 Million respectively in the previous year. The Earnings Before Interest, Depreciation and Tax was INR 5093.300 Million on consolidated basis as compared to INR 3734.800 Million in previous year and on standalone basis from INR 3253.400 Million to INR 4626.400 Million. The detailed review of operations under Steel and Wire and Wire Rope businesses has been discussed in Management Discussion and Analysis which forms part of this Report. The Board, with a view to reduce the existing debt burden of the Company, appointed a consultant to evaluate the possibility of sale of Wire and Wire Rope business of the Company.

 

Outlook and business

 

The steel demand all over the world has stabilized and is showing moderate growth. India’s crude steel production grew by 7.4 per cent year-on-year to 95.6 million tonnes (MT) in 2016. India is expected to become the world’s second largest producer of crude steel in the next 10 years, moving up from the third position, as its capacity is projected to increase to about 300 MT by 2025. Huge scope for growth is offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors. With automobile demand to grow at 7-9%, we expect automotive sector steel demand to be robust.

 

Wire rope business continues to progress satisfactory despite many challenges. Oil prices started to firm up from mid November 2016 and had been hovering around the US$ 55 mark for quite sometime. Again it slid dramatically in the 1st week of March and has been a bit volatile, currently remaining around US$ 49. Enquiries from Oil & Offshore sectors have started trickling in since November. Commodities (coal, metals) market has gained ground since November 2016 and demand in this segment has started to pick-up. Overall demand scenario for wire ropes saw an uptick across most geographies and across most product segments with stocks gradually depleting and fresh demand coming in. Even the wire rope price has started slowly increasing and we expect the business to do well going forward.

 

TPM and Quality

 

Steel Division continues to have following certification ISO 9001:2008 in Quality Management System, ISO-TS 16949:2009 in connection with QMS for Automotive Industries, ISO 14001:2004 Environment Management System, ISO50001:2011 Energy Management System and OHSAS 18001:2007. Further, Steel Division is also certified by JIPMS, Japan for TPM excellence. WWR business is moving ahead on TQM journey and work on various projects for continuous improvement is continuing on all fronts.

 

UNSECURED LOANS

 

PARTICULAR

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

From body corporate (Rupee loans)

113.000

122.800

Short-term borrowings

 

 

From a related party

15.000

15.000

Indian rupee bill discounting

2058.900

1416.900

Total

2186.900

1554.700

 

 

INDEX OF CHARGES

 

S

No

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Amount

Address

1

G36085298

100048583

EXPORT IMPORT BANK OF INDIA

08/09/2016

30/01/2017

2000000000.0

Centre One Building , Floor 21, World Trade Centre World Trade Centre Complex, Cuffe Parade Mumbai MH 400005 IN

2

G09712654

100030440

HDFC BANK LIMITED

16/05/2016

01/08/2016

200000000.0

HDFC BANK HOUSE, SENAPATI BAPAT MARGLOWER PAREL W MUMBAI MH 400013IN

3

G04302386

100028722

YES BANK LIMITED

18/04/2016

-

160000000.0

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA DR. ANNIE BESANT ROAD, WORLI Mumbai MH 400018 IN

4

G04433264

100029071

YES BANK LIMITED

18/04/2016

-

150000000.0

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA DR. ANNIE BESANT ROAD, WORLI Mumbai MH 400018 IN

5

G09556309

100017476

State Bank of Hyderabad

14/03/2016

01/08/2016

750000000.0

Trinity Tower, Ground Road83, Topsia Road KOLKATA WB 700046 IN

6

G09936832

10621879

State Bank of India

29/01/2016

01/08/2016

9000000000.0

Corporate Accounts Group Branch Reliance House, 2nd Floor, 34 J L Nehru Road Kolkata WB 700071 IN

7

G17274747

10621880

State Bank of India

29/01/2016

28/09/2016

2900000000.0

Corporate Accounts Group Branch Reliance House, 2nd Floor, 34 J L Nehru Road Kolkata WB 700071 IN

8

C69867166

10601997

ICICI Bank Limited

06/11/2015

-

300000000.0

Zonal Office3A, Gurusaday Road Kolkata WB 700019 IN

9

G55908339

10601999

ICICI Bank Limited

06/11/2015

15/09/2017

1000000000.0

Zonal Office3A, Gurusaday Road Kolkata WB 700019 IN

10

G10075679

10579926

Axis Bank Limited

22/06/2015

01/08/2016

1900000000.0

A.C. Market Building, 3rd Floor,1, Shakespeare Sarani Kolkata WB 700071 IN

 

 

CONTINGENT LIABILITIES:                                                                                            

 

Particulars

31.03.2017

(INR in million)

31.03.2016

(INR in million)

Claims against the Company not acknowledged as debt *

 

 

Tax and duty for which the Company has preferred appeal before appropriate authorities:

 

 

Demand for income tax matters

194.000

194.000

Demand for sales tax and entry tax

840.900

714.400

Demand for excise duty and service tax

792.600

671.500

Demand for customs duty

86.800

84.700

Outstanding labour disputes

7.700

6.700

Electricity duty rebate matters which is subjudice

55.200

55.200

Demand for fuel surcharge matter is pending with appropriate authority

657.900

657.900

Electricity demand on account of low power factor pending with appropriate authority

490.400

490.400

Demand for mining matter is pending with appropriate authority

753.400

746.000

Demand for differential royalty on different grades of coal extracted

573.400

0.000

Demand for compensation on account of mining and dump /infrastructure / colony established outside approved mining lease area

2714.600

0.000

Demand for financial assurance amount in Escrow account

22.600

0.000

Disputed claim by a party not acknowledged by the Company

128.600

0.000

* Future cash outflows in respect of the above matters are determinable only on receipt of judgments/ decisions pending at various forums/authorities. Based on discussions with the solicitors/favourable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above mentioned matters and hence no provision there against is considered necessary

Custom duty against fulfillment of export obligation, excluding interest thereon

348.200

348.200

 

 

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

(INR In Million)

 

 

PARTICULARS

STANDALONE

Quarter Ended

Quarter Ended

Nine Months Ended

31.12.2017

30.09.2017

31.12.2017

Unaudited

Unaudited

Unaudited

Income From Operations

 

 

 

a. Revenue from operations

9873.000

9535.900

29840.600

b. Other Income

81.200

259.400

483.700

Total Income from Operations (Net)

9954.200

9795.300

30324.300

Expenditure

 

 

 

Cost of material Consumed

4190.000

4229.100

13290.100

Purchase of Stock-in trade

15.100

12.000

41.100

Changes in inventory of finished Goods, work- in-progress and Stock-in-trade

878.400

567.000

1558.700

Excise Duty expenses

0.000

0.000

1071.800

Employees Benefit Expenses

601.100

605.900

1826.400

Finance Cost

1504.600

1427.600

4296.400

Depreciation and Amortization Expenses

665.400

688.200

2029.200

Other expenses

3205.600

3134.500

9168.600

Adjustment for items capitalized and departmental orders for own consumption

0.000

(1.100)

(1.100)

Total Expenses

11060.200

10663.200

33281.200

Profit / (Loss) before tax

(1106.000)

(867.900)

(2956.900)

Tax Expense

 

 

 

Net Profit After Tax

(1106.000)

(867.900)

(2956.900)

 

 

 

 

Other comprehensive income

 

 

 

Items that will not be reclassified to profit or loss

(4.000)

(4.000)

(12.000)

Other comprehensive income, net of income tax 

(4.000)

(4.000)

(12.000)

 

 

 

 

Total Other comprehensive income, net of income tax 

(1110.000)

(871.900)

(2968.900)

 

 

 

 

Paid- up Equity Share Capital (share – INR 1)

 

 

 

Other Equity (as per balance sheet of the previous accounting year)

305.400

305.400

305.400

Earnings Per Share (of INR 1 each) (not annualized)

 

 

 

Basic and Diluted

(3.63)*

(2.85)*

(9.70)*

 

SEGMENT INFORMATION

(INR In Million)

 

 

PARTICULARS

STANDALONE

Quarter Ended

Quarter Ended

Nine Months Ended

31.12.2017

30.09.2017

31.12.2017

Unaudited

Unaudited

Unaudited

Segment revenue

 

 

 

Steel

7874.900

7629.200

24356.500

Wire and wire ropes

4097.600

3703.100

11438.000

Unallocated        

3.800

5.500

15.700

Total

11976.300

11337.800

35810.200

Less : Inter segment revenue

2103.300

1801.900

5969.600

Total income from operations

9873.000

9535.900

29840.600

 

 

 

 

Segment results profit/(loss) before tax and interest

 

 

 

Steel

35.200

125.800

158.000

Wire and wire ropes

418.500

455.300

1355.700

Unallocated

(4.500)

(12.200)

(25.700)

Total

449.200

568.900

1488.00

 

 

 

 

Less :

 

 

 

Finance costs

1504.600

1427.600

4296.400

Other unallocable expenditure (net of unallocable income)

50.600

9.200

148.500

Profit/(loss) before tax

(1106.000)

(867.900)

(2956.900)

 

 

 

 

Segment Assets

 

 

 

Steel

53147.000

53575.600

53147.000

Wire and Wire Ropes 

10666.300

10824.100

10666.300

Unallocable

925.600

912.800

925.600

Total Assets

64738.900

65312.500

64738.900

 

 

 

 

Segment Liabilities

 

 

 

Steel

18664.500

18391.100

18664.500

Wire and Wire Ropes 

3084.200

2865.000

3084.200

Unallocable

41401.900

41358.100

41401.900

Total Liabilities

63150.600

62614.200

63150.600

 

Note:

 

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on February 5, 2018. The statutory auditors of the Company have carried out limited review of the same. 


2. 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 ended December 31, 2017, quarter ended September 30, 2017 and nine months ended December 31, 2017 are not comparable with the previous periods presented in the results which included excise duty. 


3. "Pursuant to the Hon'ble Supreme Court order dated September 24, 2014 followed by promulgation of the Coal Mines (Special Provision) Act, 2015 (CMSP Act), the allocation of Lohari and Kathautia coal blocks was cancelled with effect from September 24, 2014 and April 1, 2015 respectively. Consequently, the Company is carrying an amount of INR 1573.600 Million as Assets held for sale/Advance against land, which consists of assets in the form of land, movable and immovable properties, advances etc. Based on negotiations with the company to whom the aforesaid Coal Block was subsequently allotted, related judicial ruling, other recourses available to the Company and the advice of the Legal Counsel, management is of the opinion that the realizable value of aforesaid assets will not be less than their carrying values."  


4. During the previous quarter, the Company has received demand of INR 284.700 Million towards alleged excess mining carried out in earlier years. Based on internal assessment supported by legal opinion, the Company believes that no excess mining in terms of the relevant order of the Hon'ble Supreme court of India was carried out in those years and hence the aforesaid demand is not tenable. The Company has accordingly responded to the concerned authority against the aforesaid demand. During the quarter, the Company has filed a petition before the Hon'ble High Court of Jharkhand against the aforesaid order. The State Government of Jharkhand has also constituted a committee to look into instances of such alleged excess mining.


5. Inventories at the quarter-end includes slow moving iron ore fines aggregating INR 712.600 Million. Use of such fines for manufacture of pellets was adversely affected by fall in selling prices of pellets earlier, resulting in inventory buildup. In view of recent improvements in selling prices of pellets, management is in the process of implementing plans for utilisation of such fines for manufacture of pellets to be sold at prices that are expected to be higher than their corresponding costs. Accordingly, no provision has been considered necessary in these results in respect of aforesaid inventory of slow moving fines.  

6. Other income for the previous quarter ended September 30, 2017 includes liabilities no longer required written back INR 155.700 Million (quarter ended June 30, 2017 includes INR 102.400 Million on account of profit on sale of land). 


7. The Board of Directors of the Company had appointed a consultant to evaluate the possibility of sale of its "Wire and Wire Rope" business. The Board decided to continue with the process.  


8. Previous period figures have been regrouped / rearranged wherever necessary, to conform to current period presentation.  

 

FIXED ASSETS

 

·         Land and Site Development

·         Mining Lease and Development

·         Buildings

·         Plant and Equipment

·         Railway Sidings

·         Electrical Installation

·         Water Treatment and Supply Plant

·         Office Equipment

·         Furniture and Fixtures

·         Vehicles

·         Computer Software’s

 

 

WEBSITE DETAILS

 

NEWS / PRESS RELEASE:

 

ROW WITHIN USHA MARTIN FOUNDING FAMILY INTENSIFIES

 

03.02.2018

 

A row between two branches of the Jhawar family that founded Kolkata-based Usha Martin has intensified, with one side accusing the other of financial irregularities. 


Basant Jhawar, 82, and his son Prashant Jhawar have filed complaints at the National Company Law Tribunal and the Calcutta High court in pursuit of their claim. 


They have alleged that Rajeev Jhawar, Basant Jhawar’s nephew, orchestrated their dismissal from Usha Martin in April last year, although both remain on the board of the company. Managing director Rajeev Jhawar dismissed the allegations as “false and baseless” in his response to ET’s queries. 


The matter has also been brought to the attention of the finance ministry and government departments, the complainants said. 


Basant and Prashant Jhawar--formerly chairman emeritus and non-executive chairman, respectively--have asked the NCLT to reinstate them on the board of Usha Martin in their previous capacities, the appointment of an independent administrator to run the company, a freeze on the sale of assets and changes in its capital structure besides the appointment of an investigator to examine the allegations of wrongdoing. 


The tribunal had said shareholding structure should be left unchanged while the case is being heard. Both sides have equal stakes in the listed company. 

 

“As directors of the company, we are suspecting irregularities. This should be investigated. If no wrongdoing is found, the management stands exonerated,” Prashant Jhawar told ET. Rajeev Jhawar’s father Brij Kishore Jhawar and Basant Jhawar are brothers. 


The Usha Martin board passed a resolution on April 25 last year removing Basant Jhawar as chairman emeritus and Prashant Jhawar as non-executive chairman for refusing to pledge their shares to lenders under the terms of a restructuring agreement and blocking the sale of the company’s wire ropes business, said to be essential for reducing the company’s Rs 3,000 crore debt load 

 

Rajeev Jhawar, who had abstained from voting on the resolution, stayed on as managing director. 

 

Basant and Prashant Jhawar also allege that Usha Martin’s Singapore arm gave freight contracts for import of raw material worth $16.3 million to a Singapore-based entity called Natcom in 2014-16. Natcom was a shell entity used by Rajeev Jhawar to funnel money to buy an expensive home in a posh Singapore locality, according to them. Natcom was awarded contracts at inflated rates, had no other clients and was unknown in Singapore’s shipping industry, according to the NCLT complaint. It was granted its first contract within 14 days of its incorporation, Prashant Jhawar told ET. 

 

The NCLT complaint alleges that cost overruns of INR 15000.000 million at a steel project in Jamshedpur were on account of fund diversion. 

 

Rajeev Jhawar said these decisions had been made when his uncle and cousin were in their roles as chairman emeritus and non-executive chairman, posts they gave up only in August. 

 

“Why are they raising these issues now? They were also on the board of the company till August last year. They have chaired every meeting,” he said. 

 

Basant Jhawar separately complained to the Enforcement Directorate in a December 15, 2017, letter that his brother was evading tax in India by fraudulently claiming to be a non-resident Indian. 

 

“We have brought the matter to the notice of the finance ministry and we are confident that under the leadership of the current Prime Minister, such suspicions will be fully investigated,” Prashant Jhawar told ET. 

 

Rajeev Jhawar said he and his management team had been working hard to improve the company’s financial position and had not defaulted on loans despite peers going bankrupt. He explained that efforts to raise equity by the company were being stymied by his cousin but he still held out hope of reconciliation. 

 

“There are differences between us but I am open to a resolution,” said Rajeev Jhawar. 

 

Prashant Jhawar said his cousin was evading questions over governance at the company. “There is no family feud. We have zero confidence in Rajeev’s ethical and managerial standards,” he said. 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 65.08

UK Pound

1

INR 89.85

Euro

1

INR 80.16

 

 

INFORMATION DETAILS

 

Information Gathered by :

SUP

 

 

Analysis Done by :

PRI

 

 

Report Prepared by :

JYTK

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

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

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.