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MIRA
INFORM REPORT
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Report No. : |
510959 |
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Report Date : |
24.05.2018 |
IDENTIFICATION DETAILS
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Name : |
ISMT LIMITED |
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Registered
Office : |
Lunkad Towers, Viman Nagar, Pune – 411014, Maharashtra |
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Tel. No.: |
91-20-41434100/ 01 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
01.09.1999 |
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Com. Reg. No.: |
11-016417 |
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Capital
Investment / Paid-up Capital : |
INR 732.500 Million |
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CIN No.: [Company Identification
No.] |
L27109PN1999PLC016417 |
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IEC No.: [Import-Export Code No.] |
3101010781 |
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GSTN : [Goods & Service Tax
Registration No.] |
27AAACJ9917A1ZP |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAACJ9917A |
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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 manufacturing seamless tubes and engineering steels. [Registered Activity] |
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No. of Employees
: |
2103 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Poor |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Exist |
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Comments : |
Subject was incorporated in the year 1999. It is engaged as
manufacturer and exporter of seamless tubes and engineering steels. As per quarterly result of December 2017, the company has earned sales
turnover of INR 3848.000 million. For the financial year ended 2017, the company has achieved growth in
its revenue but has incurred huge losses from its operation during the year
under review. The company’s weak financial profile is reflected by its poor solvency
indicators due to negative net worth base, highly leverage balance profile
and weak liquidity position. Payments are seems to be slow and delayed. In view of aforesaid, the company can be
considered for business dealings on fully 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) |
|
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 |
INDIA RATING |
|
Rating |
Long term loans (withdraw) = D |
|
Rating Explanation |
Lowest-credit-quality and very low prospects of recovery. |
|
Date |
12.12.2016 |
|
Rating Agency Name |
INDIA RATING |
|
Rating |
Short term loans (withdraw) = D |
|
Rating Explanation |
Lowest-credit-quality and very low prospects of recovery. |
|
Date |
12.12.2016 |
Reason for withdrawal: Lack of adequate information
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
31-03-2018.
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 24.05.2018.
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.: 91-20-41434100/ 01)
LOCATIONS
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Registered/ Corporate Office : |
Lunkad Towers, Viman Nagar, Pune – 411014, Maharashtra, India |
|
Tel. No.: |
91-20-41434100/ 01/ 66024901-04/ 41434163 |
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Fax No.: |
91-20-26630779 |
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E-Mail : |
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Website : |
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Factory 1 (Tube) : |
MIDC Industrial Area, Ahmednagar – 414111, Maharashtra, India |
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Tel. No.: |
91-241-2777960/ 2777845/ 2777946 |
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Fax No.: |
91-241-2777363 |
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Factory 2 (Tube): |
B-13, MIDC Industrial Area, Baramati, Pune – 413133, Maharashtra,
India |
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Tel. No.: |
91-2112-243861-65 |
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Fax No.: |
91-2112-243873 |
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Factory 3 (Tube): |
Structo Hydraulics AB Storfors, Swedan |
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Factory 4 (Steel) : |
Jejuri – Morgaon Road, Jejuri – 412303, Maharashtra, India |
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Tel. No.: |
91-2115-253335/ 253116 |
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Factory 5 (Power) : |
Village Kurla, Warora, Chandrapur – 422910, Maharashtra, India |
DIRECTORS
AS ON 2018
|
Name : |
Mr. Satish Chandra Gupta |
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Designation : |
Chairman |
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Address: |
A-1/135, Inder Puri, New Delhi - 110012, India |
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Date of Appointment: |
31.07.2008 |
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DIN No.: |
00025780 |
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Name : |
Mr. Baldev Raj Topanram Taneja |
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Designation : |
Managing Director |
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Address: |
3 Kasturba Samadhi Road Near Aga Khan Palace, off Nagar Road, Pune 411006, Maharashtra, India |
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Date of Appointment: |
29.11.2005 |
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Qualification: |
B.E. (Mechanical) |
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Experience: |
57 Years |
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DIN No.: |
00328615 |
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Name : |
Mr. Rajiv Goel |
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Designation : |
Wholetime Director |
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Address: |
Flat No. 601, Building No A2, Park Island, SNO 188 Shastri Nagar, Yerwada Pune - 411006, Maharashtra, India |
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Date of Appointment: |
29.11.2005 |
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Qualification: |
B.Com (Hons) FCA, FCS |
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Experience: |
38 Years |
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PAN No.: |
ABBPG9061D |
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DIN No.: |
00328723 |
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Name : |
Mr. Om Prakash Kakkar |
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Designation : |
Director |
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Address: |
Fl, 2031-2, Clover Belvedere, SN-65 HN-1+2A/2/2, Ghorpadi Pune - 411001, Maharashtra, India |
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Date of Appointment: |
08.11.2012 |
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DIN No.: |
00329426 |
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Name : |
Mrs. Deepa Mathur |
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Designation : |
Director |
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Address: |
3 Mahendra Society Nagar Road, Pune - 411006, Maharashtra, India |
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Date of Appointment: |
10.08.2016 |
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DIN No.: |
00449912 |
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Name : |
Mr. Shyam Powar |
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Designation : |
Director |
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Address: |
207, The Elgin, Hosur Road, Richmond Town, Bangalore - 560025, Karnataka, India |
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Date of Appointment: |
13.11.2015 |
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DIN No.: |
01679598 |
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Name : |
Mr. Jagdish Prasad Sureka |
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Designation : |
Director |
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Name : |
Shashank Dixit |
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Designation : |
Nominee Director |
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Address: |
B-704, Pride Valencia, Near Pan Card Club, Baner, Pune-411045, Maharashtra, India |
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Date of Appointment: |
21.12.2017 |
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DIN No.: |
08029761 |
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Name : |
Mr. Ajit Ingle |
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Designation : |
Nominee Director |
KEY EXECUTIVES
|
Name : |
Mr. Jaikishan Pahlani |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajiv Goel |
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Designation : |
Chief Finance Officer |
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Address: |
Flat No. 601, Building No. A2, Park Island, SNO 188 Shastri Nagar, Yerwada, Pune-411006, Maharashtra, India |
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Date of Appointment: |
01.12.2014 |
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PAN No.: |
ABBPG9061D |
SHAREHOLDING PATTERN
AS ON MARCH 2018
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of
shares (calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
(A) Promoter & Promoter Group |
75580182 |
51.59 |
|
|
(B) Public |
70921201 |
48.41 |
|
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Grand Total |
146501383 |
100.00 |
STATEMENT SHOWING
SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of
shares (calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
A1) Indian |
0.00 |
||
|
Individuals/Hindu undivided Family |
4935033 |
3.37 |
|
|
ASHOK KUMAR JAIN ( HUF ) |
2536181 |
1.73 |
|
|
B R TANEJA (HUF) |
81760 |
0.06 |
|
|
BALDEVRAJ TOPANRAM TANEJA |
9033 |
0.01 |
|
|
SALIL BALDEV TANEJA |
233040 |
0.16 |
|
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JAGDISH PRASAD SUREKA HUF |
79932 |
0.05 |
|
|
ALKA P MEHTA |
73473 |
0.05 |
|
|
TARA JAIN |
1414848 |
0.97 |
|
|
MINI SUREKA |
650 |
0.00 |
|
|
AAYUSHI JAIN |
41424 |
0.03 |
|
|
AKSHAY JAIN |
10313 |
0.01 |
|
|
RAMESH SUREKA |
132155 |
0.09 |
|
|
JAGDISH PRASAD SUREKA |
40448 |
0.03 |
|
|
PRITI SUREKA |
20213 |
0.01 |
|
|
RAJ K SUREKA |
85754 |
0.06 |
|
|
SANJAY SUREKA |
56423 |
0.04 |
|
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SAVITRI DEVI SUREKA |
99386 |
0.07 |
|
|
AVISHI SUREKA |
10000 |
0.01 |
|
|
ROHIN RAJ SUREKA |
10000 |
0.01 |
|
|
Any Other (specify) |
70645149 |
48.22 |
|
|
INDIAN SEAMLESS ENTERPRISES LTD |
68918858 |
47.04 |
|
|
TULIKA ESTATE & HOLDING PVT LTD |
543023 |
0.37 |
|
|
MISRILALL PROPERTIES P LTD |
23527 |
0.02 |
|
|
MISRILALL MINES PVT LIMITED |
601197 |
0.41 |
|
|
PRISMO (INDIA) LIMITED |
210872 |
0.14 |
|
|
SHENTRACON HOLDINGS PRIVATE LIMITED |
18543 |
0.01 |
|
|
SATYA LEASING COMPANY LIMITED |
304027 |
0.21 |
|
|
LIGHTO TECHNOLOGIES PRIVATE LIMITED |
300 |
0.00 |
|
|
SHENTRACON FINALEASE PRIVATE LIMITED |
24802 |
0.02 |
|
|
Sub Total A1 |
75580182 |
51.59 |
|
|
A2) Foreign |
0.00 |
||
|
A=A1+A2 |
75580182 |
51.59 |
STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER
|
Category & Name
of the Shareholders |
Total no. shares
held |
Shareholding % calculated
as per SCRR, 1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0.00 |
||
|
Mutual Funds/ |
59270 |
0.04 |
|
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Foreign Portfolio Investors |
4595 |
0.00 |
|
|
Financial Institutions/ Banks |
1990837 |
1.36 |
|
|
LIFE INSURANCE CORPORATION OF INDIA |
1983208 |
1.35 |
|
|
Sub Total B1 |
2054702 |
1.40 |
|
|
B2) Central Government/ State Government(s)/ President of India |
0.00 |
||
|
B3) Non-Institutions |
0.00 |
||
|
Individual share capital upto INR 0.200 Million |
27547066 |
18.80 |
|
|
Individual share capital in excess of INR 0.200 Million |
7725725 |
5.27 |
|
|
NBFCs registered with RBI |
23800 |
0.02 |
|
|
Any Other (specify) |
33569908 |
22.91 |
|
|
Trusts |
5217951 |
3.56 |
|
|
Non-Resident Indian (NRI) |
11456856 |
7.82 |
|
|
JITEN KIRTANLAL SHAH |
7418640 |
5.06 |
|
|
Clearing Members |
457862 |
0.31 |
|
|
Bodies Corporate |
11647091 |
7.95 |
|
|
IEPF |
3371297 |
2.30 |
|
|
HUF |
1416951 |
0.97 |
|
|
Foreign Nationals |
1900 |
0.00 |
|
|
ISSAL EMPLOYEE WELFARE FUND |
5000000 |
3.41 |
|
|
INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY M |
3371297 |
2.30 |
|
|
Sub Total B3 |
68866499 |
47.01 |
|
|
B=B1+B2+B3 |
70921201 |
48.41 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing seamless tubes and engineering steels. [Registered Activity] |
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Products / Services
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
2103 (Approximately) |
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Bankers : |
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Facilities : |
Note: LONG TERM BORROWINGS i) Term Loans of INR 7716.000 Million (including current maturities of INR 2446.900 Million) (Previous Year INR 7716.000 Million including current maturities of INR 1439.000 Million) are stipulated to be secured by a first charge ranking pari passu on the Company’s immovable properties and movable fixed assets both present and future with other term lenders, excluding term loan lenders where exclusive charge on movable fixed assets has been stipulated and assets of Captive Power Project of the Company located at Chandrapur district. These loans are further stipulated to be secured by a second charge ranking pari passu by way of hypothecation with other term lenders on the current assets of the Company on which the first pari passu charge is stipulated to be covered in favour of consortium of banks ii) Term Loans of INR 1386.700 Million (including current maturities of INR 1016.600 Million) (Previous Year INR 1413.300 Million including current maturities of INR 571.100 Million) are stipulated to be secured by a first charge ranking pari passu on the Company’s immovable properties and movable fixed assets both present and future with other term lenders, excluding term loans lenders where exclusive charge on movable fixed assets (iii) has been stipulated and assets of Captive Power Project of the Company located at Chandrapur district iii) Term Loans of INR 918.400 Million (including current maturities of INR 589.700 Million) (Previous Year INR 936.900 Million including current maturities of INR 463.700 Million) are stipulated to be secured by exclusive charge on the equipment financed. Out of above, term loan of INR791.300 Million is further stipulated to be secured with the land appurtenant thereto. iv) Term Loans of INR 1000.000 Million (including current maturities of INR 883.100 Million ) (Previous Year INR 1039.800 Million including current maturities of INR 707.400 Million) are stipulated to be secured by first charge ranking pari passu on the Company’s immovable properties and movable fixed assets relating to Captive Power Projects of the Company located in Chandrapur district. v) Further out of the above term loans from banks, loans amounting to INR 4055.000 Millions are secured by unencumbered properties located at Ahmednagar and Jejuri and also guaranteed by the Managing Director of the Company. vi) Maturity Schedule (INR
in Million)
vii) Unsecured interest free Loan from Associate Company is towards promoter's contribution and as such there are no specific terms of repayment SHORT TERM BORROWINGS Working Capital Borrowings from Consortium Banks is secured by first charge ranking pari passu by hypothecation in respect of current assets of the Company present and future and are further secured by a second pari passu charge on the Company's immovable properties and all movable fixed assets both present and future |
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Auditor 1 : |
|
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Name : |
P. G. Bhagwat Chartered Accountants |
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Auditor 2 : |
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|
Name : |
J. K. Shah and Company Chartered Accountants |
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Auditor 3 : |
|
|
Name : |
Dhananjay V. Joshi and Associates Cost Accountants |
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Auditor 4 : |
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|
Name : |
Parkhi Limaye and Company Cost Accountants |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary
Companies : |
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Associate Companies
: |
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CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
INR 5/- each |
INR 875.000 Million |
|
|
Unclassified Shares |
|
INR 710.000 Million |
|
|
|
|
|
|
|
Total |
|
INR 1585.000
Million |
Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
146501383 |
Equity Shares |
INR 5/- each |
INR 732.500
Million |
|
|
|
|
|
The Company has only one class of Equity Shares having par value of INR 5 /- each. Holder of Equity Shares is entitled to one vote per share.
a. The reconciliation
of number of shares outstanding and the amount of share capital is set-out
below.
|
Equity Shares |
As on 31.03.2017 |
|
|
Number
of Shares |
INR
in Million |
|
|
Shares outstanding at the beginning of the year |
146501383 |
732.500 |
|
Shares issued during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
146501383 |
732.500 |
b. The details of
shareholders holding more than 5% shares.
|
Name of
Shareholder |
As on 31.03.2017 |
|
|
Number
of Shares |
% holding |
|
|
Indian Seamless Enterprises Limited |
68917558 |
47.04% |
|
Jiten Kirtanlal Shah |
7418640 |
5.06% |
During the period of five years immediately preceding the balance sheet date, there are no shares issued without payment being received in cash, issued as bonus shares and shares bought back by the Company.
FINANCIAL DATA
[all figures are
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 |
732.500 |
732.500 |
732.500 |
|
(b) Reserves &
Surplus |
(4253.600) |
(1369.200) |
2054.500 |
|
(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) |
(3521.100) |
(636.700) |
2787.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
6305.400 |
8195.100 |
9671.700 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
63.700 |
65.400 |
63.400 |
|
Total Non-current
Liabilities (3) |
6369.100 |
8260.500 |
9735.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
10586.500 |
9224.200 |
4583.800 |
|
(b) Trade payables |
1289.400 |
2181.200 |
4772.200 |
|
(c) Other current
liabilities |
9680.400 |
5733.800 |
5100.500 |
|
(d) Short-term provisions |
25.700 |
28.700 |
32.100 |
|
Total Current Liabilities
(4) |
21582.000 |
17167.900 |
14488.600 |
|
|
|
|
|
|
TOTAL |
24430.000 |
24791.700 |
27010.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
14474.400 |
15194.000 |
15695.500 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
172.900 |
50.100 |
78.300 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
528.100 |
527.900 |
527.900 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1414.000 |
1297.000 |
1113.400 |
|
(e) Other Non-current
assets |
831.800 |
831.800 |
925.700 |
|
Total Non-Current Assets |
17421.200 |
17900.800 |
18340.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
3226.400 |
3312.500 |
4100.000 |
|
(c) Trade receivables |
2001.600 |
1879.800 |
1761.400 |
|
(d) Cash and cash
equivalents |
484.200 |
334.600 |
1191.400 |
|
(e) Short-term loans and
advances |
255.000 |
315.200 |
224.800 |
|
(f) Other current assets |
1041.600 |
1048.800 |
1392.300 |
|
Total Current Assets |
7008.800 |
6890.900 |
8669.900 |
|
|
|
|
|
|
TOTAL |
24430.000 |
24791.700 |
27010.700 |
PROFIT
& LOSS ACCOUNT [STANDALONE]
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
10531.800 |
9916.800 |
15045.000 |
|
|
Other Income |
60.700 |
120.800 |
113.900 |
|
|
TOTAL |
10592.500 |
10037.600 |
15158.900 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
5224.300 |
4776.200 |
7331.000 |
|
|
Purchases of
Stock-in-Trade |
0.400 |
0.400 |
162.400 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
130.100 |
515.200 |
588.600 |
|
|
Employees benefits
expense |
1101.400 |
1063.000 |
1208.100 |
|
|
Exceptional items |
(8.300) |
450.800 |
(422.900) |
|
|
Other expenses |
3633.800 |
3440.600 |
5407.100 |
|
|
TOTAL |
10081.700 |
10246.200 |
14274.300 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION |
510.800 |
(208.600) |
884.600 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
2688.900 |
2801.300 |
2354.500 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(2178.100) |
(3009.900) |
(1469.900) |
|
|
|
|
|
|
|
Less |
DEPRECIATION/ AMORTISATION
|
706.300 |
718.300 |
740.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(2884.400) |
(3728.200) |
(2209.900) |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
93.900 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
(2884.400) |
(3822.100) |
(2209.900) |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
(8544.000) |
(4721.900) |
(2452.700) |
|
|
|
|
|
|
|
Add |
Adjustment to Carrying
Value of Assets |
0.000 |
0.000 |
(59.300) |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S |
(11428.400) |
(8544.000) |
(4721.900) |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
734.500 |
1046.700 |
2631.300 |
|
|
Freight on Exports |
39.500 |
51.100 |
185.600 |
|
|
TOTAL EARNINGS |
774.000 |
1097.800 |
2816.900 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
1084.900 |
1386.200 |
3303.600 |
|
|
Stores Spares &
Consumables |
152.200 |
124.000 |
409.300 |
|
|
Capital Goods |
5.100 |
3.800 |
0.000 |
|
|
TOTAL IMPORTS |
1242.200 |
1514.000 |
3712.900 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
(19.69) |
(26.09) |
(15.08) |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current
Maturities of Long term debt |
|
|
|
|
Secured |
|
|
|
|
Rupee Loans |
2874.500 |
1866.600 |
605.600 |
|
Foreign Currency Loans |
2061.700 |
1314.600 |
1619.800 |
|
Unsecured |
|
|
|
|
Interest Free Sales Tax Loan |
5.070 |
47.500 |
27.900 |
|
Interest accrued but not due on borrowings |
4.100 |
6.000 |
8.300 |
|
Interest accrued and due on borrowings |
4002.200 |
1532.700 |
213.400 |
|
Unclaimed dividends |
17.300 |
23.200 |
26.300 |
|
Total Current
Maturities |
8964.870 |
4790.600 |
2501.300 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net Cash flow from Operating Activities |
(928.800) |
(2749.100) |
680.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2017 1st
Quarter |
30.09.2017 2nd
Quarter |
31.12.2017 3rd
Quarter |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
Net Sales |
3077.200 |
3382.600 |
3848.000 |
|
Total Expenditure |
2942.100 |
3210.400 |
3659.100 |
|
PBIDT (Excluding Other Income) |
135.100 |
172.200 |
188.900 |
|
Other Income |
21.500 |
17.200 |
42.500 |
|
Operating Profit |
156.600 |
189.400 |
231.400 |
|
Interest |
691.000 |
690.600 |
684.400 |
|
Exceptional Items |
28.800 |
13.600 |
20.700 |
|
PBDT |
(505.600) |
(487.600) |
(432.300) |
|
Depreciation |
142.100 |
145.00 |
145.000 |
|
Profit Before Tax |
(647.700) |
(632.600) |
(577.300) |
|
Tax |
(8.100) |
NA |
NA |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
(639.600) |
(632.600) |
(577.300) |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
(639.600) |
(632.600) |
(577.300) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors
/ Income * 365) |
69.37 |
69.19 |
42.73 |
|
|
|
|
|
|
Account Receivables Turnover (Income /
Sunday Debtors) |
5.26 |
5.28 |
8.54 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
90.08 |
166.67 |
232.45 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
0.16 |
(0.06) |
0.22 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.03 |
(0.01) |
0.06 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
1.51 |
1.22 |
0.99 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
(7.34) |
(34.88) |
6.01 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
(6.13) |
(26.96) |
5.20 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
(4.16) |
(23.94) |
5.66 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
0.19 |
(0.07) |
0.38 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin [(PAT / Sales) * 100] |
% |
(27.39) |
(38.54) |
(14.69) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(11.81) |
(15.42) |
(8.18) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
81.92 |
600.30 |
(79.29) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.32 |
0.40 |
0.60 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.18 |
0.21 |
0.32 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
(0.14) |
(0.03) |
0.10 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
35.30 |
30.32 |
22.88 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.32 |
0.40 |
0.60 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 5.00/- |
|
Market Value |
INR 6.30/- |
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR In Million |
INR In Million |
INR In Million |
|
Share Capital |
732.500 |
732.500 |
732.500 |
|
Reserves & Surplus |
2054.500 |
(1369.200) |
(4253.600) |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
2787.000 |
(636.700) |
(3521.100) |
|
|
|
|
|
|
Long-term borrowings |
9671.700 |
8195.100 |
6305.400 |
|
Short term borrowings |
4583.800 |
9224.200 |
10586.500 |
|
Current Maturities of
Long term debt |
2501.300 |
4790.600 |
8964.870 |
|
Total borrowings |
16756.800 |
22209.900 |
25856.770 |
|
Debt/Equity ratio |
6.012 |
(34.883) |
(7.343) |
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 |
15045.000 |
9916.800 |
10531.800 |
|
|
|
(34.086) |
6.202 |
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 |
15045.000 |
9916.800 |
10531.800 |
|
Profit / (Loss) |
(2209.900) |
(3822.100) |
(2884.400) |
|
|
(14.69%) |
(38.54%) |
(27.39%) |
ABRIDGED
BALANCE SHEET [CONSOLIDATED]
|
SOURCES OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
732.500 |
732.500 |
|
(b) Reserves &
Surplus |
|
(4794.000) |
(1905.200) |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
|
(4061.500) |
(1172.700) |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
6416.800 |
8502.500 |
|
(b) Deferred tax
liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term
liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
74.700 |
79.700 |
|
Total Non-current
Liabilities (3) |
|
6491.500 |
8582.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
10757.600 |
9420.500 |
|
(b) Trade payables |
|
1414.100 |
2197.800 |
|
(c) Other current
liabilities |
|
9791.000 |
5800.500 |
|
(d) Short-term provisions |
|
25.700 |
28.700 |
|
Total Current Liabilities
(4) |
|
21988.400 |
17447.500 |
|
|
|
|
|
|
TOTAL |
|
24418.400 |
24857.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
14885.800 |
15637.600 |
|
(ii) Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
|
1055.600 |
941.100 |
|
(iv) Intangible assets
under development |
|
376.700 |
376.700 |
|
(b) Non-current
Investments |
|
0.200 |
0.000 |
|
(c) Deferred tax assets
(net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
27.800 |
84.100 |
|
(e) Other Non-current
assets |
|
842.100 |
843.500 |
|
Total Non-Current Assets |
|
17188.200 |
17883.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
3335.400 |
3431.800 |
|
(c) Trade receivables |
|
2034.000 |
1814.000 |
|
(d) Cash and cash
equivalents |
|
513.700 |
350.500 |
|
(e) Short-term loans and
advances |
|
292.100 |
317.700 |
|
(f) Other current assets |
|
1055.000 |
1060.000 |
|
Total Current Assets |
|
7230.200 |
6974.000 |
|
|
|
|
|
|
TOTAL |
|
24418.400 |
24857.000 |
PROFIT
& LOSS ACCOUNT [CONSOLIDATED]
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
10946.100 |
10147.500 |
|
|
Other Income |
|
64.800 |
127.000 |
|
|
TOTAL |
|
11010.900 |
10274.500 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
5291.000 |
4850.600 |
|
|
Purchases of
Stock-in-Trade |
|
210.200 |
0.400 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
144.000 |
545.200 |
|
|
Employees benefits
expense |
|
1215.500 |
1200.800 |
|
|
Exceptional items |
|
(2.900) |
444.100 |
|
|
Other expenses |
|
3620.500 |
3511.700 |
|
|
TOTAL |
|
10478.300 |
10552.800 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
532.600 |
(278.300) |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
|
2700.700 |
2824.400 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
|
(2168.100) |
(3102.700) |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
|
737.800 |
751.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
|
(2905.900) |
(3853.800) |
|
|
|
|
|
|
|
Less |
TAX |
|
(0.100) |
94.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
|
(2905.800) |
(3947.800) |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
(19.83) |
(26.95) |
LEGAL
CASE
|
|
|
|
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 |
Yes |
|
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 |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
OPERATIONS
Both the tube and steel segments continued to operate at low capacity utilization levels. However, on account of cost reduction and other measures undertaken by the Company, the EBIDTA for the year went up by 50%.
The Company had declared lock-out at its Steel Plant with effect from February 16, 2017 which was lifted with effect from March03, 2017.
MARKET
Though the steel sales were flat, the tube sales recorded a healthy growth of 25%. The imposition of long term anti-dumping duty on imports from China, firming up of international oil prices and gradual pick up in economic activity are expected to drive the growth of both domestic and export markets.
MANAGEMENT DISCUSSION
AND ANALYSIS
There was a marginal increase in demand during the year for domestic segments however in export segment there was a drop. The economy did not revive as expected and oil prices stayed low for most part of the year which firmed up later part of the year.
Steel sales volumes increased marginally by 3% over previous year. Domestic Tube Sales volumes saw a healthy increase of 35% in the current year over previous year. Export Tube Sales volumes however dropped sharply by 32% over previous year.
The Company had declared lock-out at its Steel Plant with effect from February 16, 2017 which was lifted with effect from March 03, 2017. This to some extent affected Steel sales adversely.
INDUSTRY STRUCTURE AND
DEVELOPMENTS
SEAMLESS TUBES
INDUSTRY
Seamless tubes have unique features of better surface finish and hence good machineability, excellent corrosion resistance properties, higher pressure ratings & ‘Strength to weight’ ratio, Uniform shape and longer life over other tube types. With newer technologies manufacturing of thinner tubes is resulting into increasing usage of Seamless Tubes for newer applications and industries. However, the higher capital investment, use of high end technology & requirement of experienced manpower has restricted the use of Seamless Tubes in some of the sectors. Seamless Tubes find applications in Oil and Gas exploration industry, Power Sector, Automotive, Construction Equipment, Bearing, Material handling equipments, Structural Components and host of other Mechanical applications. The seamless Tube consumption is largely dependent on economic developments and with expected long term economic growth, the Company is assured of a secular market in future.
The Oil Exploration sector globally is the largest market for Seamless Tubes. Though the international oil prices firmed up in the later part of the year and were stable above USD 50 per barrel, the demand for seamless tubes and pipes did not increase as expected. In the domestic market, demand for seamless tubes in Auto Industry continued to increase. However lack of spending in Power and Infrastructure Sector failed to increase the demand of seamless tubes in the sector.
ANTI DUMPING
There was a slight increase in domestic demand for seamless tubes and pipes. With imposition of Provisional Anti-Dumping Duty by Ministry of Finance on imports of seamless tubes and pipes originating in or exported from China, the market share of domestic players has gone up in the second half of the year.
The duty imposed is by way of reference price separately for respective category of tubes which range from USD 961 per MT to USD 1611 per MT depending on tube category. The duty will be in place for a period of five years i.e. up to May 2021.
STEEL INDUSTRY
ISMT is an established market leader in the production of specialty alloy and bearing Steel. With over 20 years of experience in the manufacture of special steels, the strength of the Company lies in its ability to produce very clean steels consistently and cost effectively; to produce hard to manufacture free machining steels; to develop and custom produce steels that meet specific mechanical or metallurgical requirements; and to deliver small lots of steels. The end user segments are largely Bearing, Automotive, Engineering and Forging Customers apart from some customers requiring steel for specialized application. The raw material prices have shown a increasing trend in the later part of the year.
ISMT operate one of the most modern alloy steel plants in the country where steel is produced through the electric arc furnace (EAF) route, is ladle refined, vacuum degassed, continuous cast and rolled.
SEGMENT-WISE /
PRODUCT-WISE PERFORMANCE
The Company is engaged in manufacturing Seamless Tubes and Engineering Steels. Seamless Tube accounted for 62% of ISMT’s total external sales value while Steel accounted for the balance 38%. Captive consumption of steel is same as that of last year at 34%.
As a result of imposition of Anti-Dumping Duty and marginal positive economic development due to government’s ‘Make in India’ program, the domestic seamless tube sales increased by 35% over previous year. Domestic steel sales were stagnant and increased only by 3% over previous year. Duties on Indian imports by U. S. on certain seamless tube categories and overall weak demand for seamless tubes in international market led to drop in export sales volumes.
OUTLOOK
Levy of Final Anti-Dumping Duty on import of seamless tube into India from China coupled with
‘Make in India’ program of the
Government of India is likely to lead Progressive increase in volume of the Company’s product in
domestic market. Firming of
international oil prices late in the year is a good sign for higher global demand for seamless tubes which
in turn will increase exports of the
Company.
FINANCIAL PERFORMANCE
Some of the key financial parameters are as under:
FINANCE COST
The Finance cost for the year reduced by INR 110.000 Million and stood at 26% of Net Revenue. The reduction in cost was mainly due to appreciation of Indian Rupee against USD & Euro.
During the year imported raw material consumption came down from INR 1770.000 Million in previous year to INR 1450.000 Million.
Exports are targeted to grow with further market penetration and revival of global economy. Going forward this shall lead to growing net Foreign Exchange inflows. The Company’s forex exposure is managed both through a natural hedge and by contracting appropriate treasury products, with a view to balancing risks while optimizing borrowing costs. Appropriate hedging tools are used under the board approved risk management policy framework. The forex risk is reviewed periodically and managed in line with the objectives laid in the policy.
Foreign Currency Term Loans accounted for over 26% of the Company’s outstanding term debt as on March 31, 2017 which is same as on March 31, 2016.
During the year the Company was eligible for INR 123.200 Million as incentive under the Mega Project Incentive Scheme of Government of Maharashtra against INR 85.000 Million Previous Year. Under this Scheme the Company is eligible for a total incentive of up to INR 1950.000 Million by 2017.
UNSECURED LOANS:
|
Unsecured Loan |
31.03.2017 INR In Million |
31.03.2016 INR In Million |
|
Long-term
Borrowings |
|
|
|
Interest Free Incentive and Sales Tax Loan |
143.100 |
193.800 |
|
Others - From Associate Company |
77.500 |
77.500 |
|
|
|
|
|
Short-term
borrowings |
|
|
|
Working Capital
Borrowings From Bank |
|
|
|
Rupee Loan |
313.200 |
313.200 |
|
Total |
533.800 |
584.500 |
INDEX OF CHARGE:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
C65098543 |
10589857 |
Indian Overseas Bank |
10/07/2015 |
31/08/2015 |
- |
4055000000.0 |
Pune Cantonment BranchWonderland, 7 M G RoadPuneMH411001IN |
|
2 |
C13292024 |
10510965 |
Indian Overseas Bank |
20/06/2014 |
- |
- |
500000000.0 |
Pune Cantonment BranchWonderland, 7 M G RoadPuneMH411001IN |
|
3 |
C11415163 |
10457773 |
State Bank of India |
30/10/2013 |
20/06/2014 |
- |
500000000.0 |
Industrial Finance Branch, PuneTara Chambers, Mumbai Pune RoadPuneMH411003IN |
|
4 |
C10595791 |
10448095 |
Bank of India |
30/08/2013 |
20/06/2014 |
- |
500000000.0 |
Sushilp, 1290, Shivajinagar,Opposite Swan Inn, Off. Jangli Maharaj RoadPuneMH411005IN |
|
5 |
C10680205 |
10447489 |
Bank of Baroda |
24/08/2013 |
20/06/2014 |
- |
500000000.0 |
Corporate Financial Services BranchMantri Court, 1st Floor, 39, Ramabai Ambedkar RoadPuneMH411001IN |
|
6 |
C14856959 |
10446041 |
BANK OF MAHARASHTRA |
01/08/2013 |
20/06/2014 |
- |
500000000.0 |
Lokmangal1501,ShivajinagarPuneMH411005IN |
|
7 |
G36444040 |
10440923 |
EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED |
03/07/2013 |
29/06/2016 |
- |
400000000.0 |
Edelweiss House, Off. C.S.T Road,Kalina,MumbaiMa400098IN |
|
8 |
C11435617 |
10433156 |
Andhra Bank |
05/06/2013 |
20/06/2014 |
- |
300000000.0 |
Specialized Corporate Finance Branch, 16th FloorEarnest House, NCPA Marg,Nariman PointMumbaiMH411021IN |
|
9 |
C13106968 |
10419654 |
Indian Overseas Bank |
04/04/2013 |
20/06/2014 |
- |
500000000.0 |
Pune Cantonment BranchWonderland, 7 M G RoadPuneMH411001IN |
|
10 |
B61175071 |
10384144 |
BANK OF BARODA |
08/10/2012 |
- |
- |
774750000.0 |
GLOBAL SYNDICATION CENTER32 CITY ROADLONDONNAEC1Y2BDGB |
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Claims against the
Company not acknowledged as debt |
|
|
|
- Sales Tax |
150.600 |
131.600 |
|
- Income Tax disputed by the Company |
7.000 |
44.500 |
|
- Excise and Customs Duty |
273.900 |
285.300 |
|
- Other |
1536.100 |
1557.200 |
|
Corporate Guarantees * |
0.000 |
165.800 |
|
Bills discounted on behalf of third party |
157.400 |
671.800 |
* Given on behalf of Structo Hydraulics AB, Sweden of INR Nil (Previous Year of INR 165.800 Million (USD 2.50 Million ) in respect of loan availed.
STATEMENT OF STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED DECEMBER
31, 2017
(INR In Million)
|
Particulars |
Quarter ended |
Nine months ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
INCOME FROM OPERATIONS |
|
|
|
|
Net Sales |
3786.800 |
3340.500 |
10158.300 |
|
Other Operating Income |
61.200 |
42.100 |
149.500 |
|
Total
Income from Operations |
3848.000 |
3382.600 |
10307.800 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of materials consumed |
2198.300 |
2008.600 |
5758.100 |
|
Changes in inventories of finished goods and
work-in-progress |
(126.400) |
(215.600) |
(495.800) |
|
Employee benefits expense |
322.500 |
316.400 |
949.700 |
|
Finance costs |
684.400 |
690.600 |
2066.000 |
|
Depreciation and Amortization expenses |
145.000 |
145.000 |
432.100 |
|
Other Expenditure |
1264.700 |
1101.000 |
3599.600 |
|
Total
Expenses |
4488.500 |
4046.000 |
12309.700 |
|
Profit / (Loss) from ordinary activities before Net
Exceptional income / (Expenditure) |
(598.000) |
(646.200) |
(1920.700) |
|
Net Exceptional Income / (Expenditure) |
(20.700) |
(13.600) |
(63.100) |
|
Profit / (Loss) before Tax |
(577.300) |
(632.600) |
(1857.600) |
|
Tax Expense |
0.000 |
0.000 |
(8.100) |
|
Profit
/ (Loss) after Tax |
(577.300) |
(632.600) |
(1849.500) |
|
Other
comprehensive income (net of tax) |
|
|
|
|
Items
that will not be reclassified to profit or loss |
|
|
|
|
Gain on remeasurement of defined benefit plan (net of tax) |
2.100 |
4.100 |
6.200 |
|
Other
comprehensive income (net of tax) |
2.100 |
4.100 |
6.200 |
|
Total
comprehensive income (net of tax) |
(575.200) |
(628.500) |
(1843.300) |
|
Paid-up Equity Share Capital (Face value INR 5/- per
share) |
732.500 |
732.500 |
732.500 |
|
Basic
and Diluted EPS (in INR) |
(3.94) |
(4.32) |
(12.62) |
SEGMENT WISE
REVENUE, RESULTS, ASSETS AND LIABILITIES
(INR in Million)
|
Sr. No. |
Particular |
Quarter ended |
Nine months ended |
|
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Segment Revenue |
|
|
|
|
|
a) Gross Sales - Tube |
2901.500 |
2652.800 |
7811.200 |
|
|
Less : Inter segment |
265.900 |
354.900 |
831.700 |
|
|
Total |
2635.600 |
2297.900 |
6979.500 |
|
|
|
|
|
|
|
|
b) Gross Sales - Steel |
1888.800 |
1780.900 |
5505.800 |
|
|
Less : Inter segment |
737.600 |
738.300 |
2327.000 |
|
|
Total |
1151.200 |
1042.600 |
3178.800 |
|
|
|
|
|
|
|
|
Total segment revenue |
3786.800 |
3340.500 |
10158.300 |
|
|
|
|
|
|
|
2. |
Segment Result |
|
|
|
|
|
Profit/(Loss) after depreciation and before finance costs and exceptional items, unallocable income(net) and tax |
|
|
|
|
|
Tube |
(5.900) |
(58.200) |
(117.300) |
|
|
Steel |
58.900 |
90.600 |
192.600 |
|
|
Total |
53.000 |
32.400 |
75.300 |
|
|
Less : i.
Interest |
684.400 |
690.600 |
2066.000 |
|
|
Ii: Exceptional items – foreign exchange (gains) / loss |
(20.700) |
(13.600) |
(63.100) |
|
|
Add: Un-allocable income |
33.400 |
12.000 |
70.000 |
|
|
Total Profit/(Loss)
before tax |
(577.300) |
(632.600) |
(1857.600) |
|
|
|
|
|
|
|
|
Less: Tax expenses |
0.000 |
0.000 |
(8.100) |
|
|
|
|
|
|
|
|
Total Profit/(Loss)
After Tax |
(577.300) |
(632.600) |
(1849.500) |
|
|
|
|
|
|
|
3. |
Segment Assets |
|
|
|
|
|
Tube |
14134.600 |
14341.400 |
14134.600 |
|
|
Steel |
3997.000 |
4009.000 |
3997.000 |
|
|
Unallocable |
6363.800 |
6428.800 |
6363.800 |
|
|
Total Segment
Assets |
24495.400 |
24779.200 |
24495.400 |
|
|
|
|
|
|
|
|
Segment Liabilities |
|
|
|
|
|
Tube |
1208.500 |
1412.500 |
1208.500 |
|
|
Steel |
999.100 |
967.700 |
999.100 |
|
|
Unallocable |
27632.200 |
27168.100 |
27632.200 |
|
|
Total Segment
Liabilities |
29839.800 |
29548.300 |
29839.800 |
NOTES:
1. The Company had exercised the option as per Para 46A inserted in the AS-11 for treatment of exchange difference on long term monetary liabilities and opted to avail exemption as per para D13AA of Ind AS 101 "First -time Adoption of Indian Accounting Standards". Accordingly, Exchange Gain of INR 43.400 Million for the quarter ended December 31, 2017 and Exchange Loss of INR 5.100 Million for the nine months ended December 31, 2017 has been adjusted to the respective fixed assets.
2. The Company through its Subsidiary Company, ISMT Enterprises S.A.,
Luxembourg has invested INR 484.300 Million in Structo Hydraulics AB, Sweden
(SHAB). The Company has received the approval from regulatory authorities for
conversion into equity of an amount of INR 333.300 Million (USD 5 Million) due
from SHAB on account of payment towards invocation of guarantee by lender of
SHAB, which is considered as investment on adoption of Ind AS and the Company
is taking steps for implementation of the same. The net receivables on account of
sales made to SHAB are INR 150.500 Million and the same is considered as
collectible. No provision, however, has been made in respect of diminution in
the value of investment, which is in the nature of forward integration and considered
Strategic and Long Term.
3. i) Maharashtra Electricity Regulatory Commission (MERC) had disallowed
Company's petition regarding banking of energy facility under Energy Banking
Agreement (EBA) vide its orders dated June 20, 2014 and January 12, 2015. The
Company filed an appeal before the Appellate Tribunal (APTEL) against the said
order and the same has been dismissed by the APTEL vide their order dated April
1, 2016. Thereafter, the Company filed an appeal, challenging the APTEL order,
before the Hon'ble Supreme Court and the same has been admitted by the Supreme
Court on August 1, 2016. The Company had accrued EBA benefit aggregating to INR
499.700 Million upto March 31, 2014, of which amount outstanding as on December
31, 2017 is INR 395.300 Million, representing excess energy charges paid to
Maharashtra State Electricity Distribution Company Limited (MSEDCL) on account
of non-availability of banking of energy facility. There has been no further
accrual since April 1, 2014 on account of suspension of operation of power
plant.
ii) In view of the above the Company has not been able to operate the 40 MW
Captive Power Plant (CPP) and is held for sale. In the opinion of the
management, the Company expects to realise not less than its carrying amount of
INR 2505.200 Million.
4. Employee Benefits Expense includes remuneration payable to the Managing
Director and Executive Director for the quarter ended December 31, 2017 of INR 8.000
Million and cumulatively amounting to INR 35.900 Million up to December 31,
2017, which is subject to approval of the Central Government.
5. As per Ind AS-12 "Income Tax", Minimum Alternate Tax (MAT) credit
(unused tax credit) is regarded as Deferred Tax Assets and the same shall be
recognised to the extent that it has become probable that future taxable profit
will be available against which the unused tax credit can be utilised. In view
of Business uncertainties and re-structuring proposal under consideration, it
is not possible for the Company to fairly ascertain adequacy/ inadequacy of
future taxable profit against which MAT Credit can be utilized. Accordingly,
the unabsorbed MAT credit of INR 82.05 Millions as at December 31, 2017, if
any, shall be charged in the Statement of Profit and Loss to the extent it
lapses in the respective years.
6. Deferred Tax Asset in respect of carried forward losses is recognized to the
extent of Deferred Tax Liability.
7. As a result of various measures taken by the Company, net loss for the
financial year 2016-17 (as per previous GAAP) had come down to INR 2884.400 Million
against loss of INR 3822.100 Million of financial year 2015-16. The loss for
the current period ended December 31, 2017 has further come down to INR 1843.300
Million against a loss of INR 2142.900 Million of previous period ended
December 31, 2016. The levy of anti-dumping duty by the Government of India on
import of tubes from China effective February 17, 2017, an increasing trend in
international oil prices and a gradual pick up in and are some of the factors
contributing to reduced losses. The Company has, therefore, continued to
prepare its financial statements on 'Going Concern basis.'
8. The Company and the lenders have been exploring various options including
OSDR for debt resolution and pending the same, interest on the loans has been
provided as per the terms of sanction letters of the respective banks on simple
interest basis. However no overdue / penal and compounding of interest, if any,
has been provided.
9. Tridem Port and Power Company Private Limited ( TPPCL), the wholly owned
subsidiary of tine Company, along with its subsidiaries had proposed to set up
a thermal power project and captive port in Tamil Nadu. However, on account of
subsequent adverse developments, the Company had decided not to pursue these
projects. No provision has, however, been considered necessary for the amount
invested of INR 1084.700 Million ( including advances given to TPPCL of INR 1058.900
Million being considered as investment on adoption of Ind AS), since in the
opinion of the management, the Company expects to realise not less than the
amount invested/advanced.
10. The above results have been prepared in accordance with Companies (Indian
Accounting Standards) Rules, 2015 (Ind AS) to the extent applicable. The
Company has adopted Ind AS for the first time beginning April 1, 2017 with
transition date April 1, 2016.
11. The auditors have carried out limited review of the above results for the
quarter/nine months ended December 31, 2017. Ind AS compliant financial results
for the quarter/nine months ended December 31, 2016 have not been subjected to
limited review. However, the management has exercised necessary due diligence
to ensure that the financial results for the said quarter/nine months provide a
true and fair view of the affairs of the Company.
12. Revenue from operations for the quarter/nine months ended December 31, 2017
is net of Goods and Service Tax (GST).However Revenue from operations till the
period ended June 30, 2017 and other comparative periods are gross of Excise
Duty. Hence the Revenue from operations for the quarter and nine months ended
December 31, 2017 are not comparable with the figures of the previous periods.
13. The above results have been reviewed by the Audit Committee and approved by
the Board of Directors at their meetings held on February 28, 2018.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Computer Equipment’s
PRESS RELEASE:
WEBSITE
FOUR ENTITIES BID FOR
DEBT-LADEN INDIAN SEAMLESS METAL TUBES
MUMBAI: Indian Seamless Metal Tubes (ISMTNSE -4.88 %), the first debt-laden company that lenders are experimenting to sell outside of the Insolvency & Bankruptcy Code (IBC) after the law came into effect, has attracted four bids, said two bankers familiar with the matter.
If the model is a success, banks may adopt a similar strategy on more small and
medium-size companies and keep the debt resolution outside the National Company
Law Tribunal, which is the designated court to deal with bankruptcy cases, they
said, speaking on the condition of anonymity.
Maharashtra Seamless, Ratnamani Metals & Tubes, Hindustan Infra and Edelweiss NSE -1.99 % Asset Reconstruction Company have submitted turnaround plans for ISMT, which faced claims of INR 2,000 million from lenders. Indian Overseas Bank, which is the lead lender, had called for bids from potential investors for taking management control of the company and revive it, said the people.
“Lenders have received bids in the range of INR 5000.000 million to INR 10000.000
million and we are evaluating them,” said a second bank official. “Depending on
the bids, we will negotiate with the bidders.”
The advantage of this model is that the lenders they can enlist the existing promoters to come up with a turnaround proposal — IBC limits this only to those promoters who have cleared their arrears. Secondly, if the 270 days deadline is missed, lenders don’t have to go for liquidation of the company, which the bankruptcy law prescribes in case the resolution plan is not put in place by 270 days.
“After IBC was passed, this is one of the first cases that bankers are pursuing outside of bankruptcy court but with the intent to follow the same spirit, timeline and process as IBC. If it is successful, many small companies may be resolved through this route,” said one bank official.
In this case, banks have not converted their debt into equity under the strategic debt restructuring scheme — a mechanism that makes it easier for banks to change the management of a company. The Reserve Bank of India has permitted banks to convert the debt of such companies into equity, which can be sold within 18 months.
According to lenders, bidders for ISMT would have to make an upfront cash payment of INR 1500.000 million to be eligible to vie for the company. They will have to also furnish a turnaround plan.
ISMT manufactures alloy tubes and pipelines catering to the oil and gas sector.
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 68.21 |
|
UK Pound |
1 |
INR 91.43 |
|
Euro |
1 |
INR 80.24 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVT |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.