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MIRA
INFORM REPORT
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Report No. : |
511573 |
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Report Date : |
28.05.2018 |
IDENTIFICATION DETAILS
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Name : |
GOODLUCK INDIA LIMITED (w.e.f. 14.06.2016) |
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Formerly Known
As : |
GOOD LUCK STEEL TUBES LIMITED |
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Registered Office
: |
509, Arunachal Building, Barakhamba Road, Connaught Place, New Delhi - 110001 |
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Tel. No.: |
91-120-4196600 / 4196700 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
06.11.1986 |
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Com. Reg. No.: |
55-050910 |
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Capital Investment
/ Paid-up Capital : |
INR 46.012 Million |
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CIN No.: [Company Identification
No.] |
L74899DL1986PLC050910 |
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IEC No.: [Import-Export Code No.] |
0593020707 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
AAACG3204D |
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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 an engineering product manufacturing conglomerate, engaged in manufacturing & also exporting of wide range of heavy engineered structure, transmission and distribution tower, CDW Tubes, Precision Tubes, Pipes, Sheets and forged engineering products. (Registered activity) |
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No. of Employees
: |
1584 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject was incorporated in the year 1986. It is engaged in
manufacturing of engineering products and exporting of wide range of Heavy Engineered
Structure, Transmission and Distribution Tower and Forged Engineering
products. The subject's customer includes, NTPC, L& T Infotech, Mahanagar
Gas, TATA, Toyota etc. As per the available financial records of 2017, the revenue of the
company has increased by 9.21% along with average profit margin of 2.04%. The healthy financial profile of the company is marked by strong
networth base along with comfortable debt coverage indicators. The rating takes into consideration the subject’s long established
track record of the business operations along with extensive experience of
its promoters. The company has its share price trading at around INR 77.35 against
the Face Value (FV) of INR 02 on BSE as on 25th May, 2018. As per the unaudited quarterly financials of December 2017, the
company has achieved revenue of INR 3173.417 million and has reported profit
margin of 1.10%. Business is active. Payment seems to be usually correct. In view of aforesaid, the company can be considered for good business dealings
at usual trade terms and conditions. Note1: A Scheme of amalgamation for the merger of wholly owned
subsidiary company, Masterji Metalloys Private Limited ( The “Transferor
company” ) with effect from 01.04.2015 (the appointed date) was sanctioned by
Hon’ble High Court of Delhi on 29.08.2016 & filed with the registrar of
Companies on 09.11.2016, Accordingly the scheme has been given effect in the
accounts for the year and the entire undertaking of the such subsidiary
stands transferred to and vested in the company as a going concern and the
subsidiary stands dissolved without winding up. As per the scheme, “pooling
of interest” method in accordance of AS 14 was adopted and accordingly all
the assets and liabilities including reserves & surplus recorded in the
books of transferor company has been transferred to and vested in the
transferee company at the respective book values as reflected in the books of
the transferor company. The difference between the investment made by the
transferee company in the shares of transferor company and the book value of
the net assets of the transferor company taken over, amounting to INR 19.701
million has been debited to the surplus in the statement of Profit & Loss
account. Note2: Board of Directors of the Company at its meeting held on March
08 2018, has considered and approved, in principle, the proposed Corporate
Restructuring by way of Demerger of Goodluck India Limited. The Board of Directors of the Company will further meet to consider
and approve the Draft Scheme of arrangement and other documents in this
connection. |
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 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low
Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High
Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
Long Term = BBB |
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Rating Explanation |
Moderate degree of safety and moderate credit risk. |
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Date |
13.03.2018 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term = A3+ |
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Rating Explanation |
Moderate degree of safety and higher credit risk. |
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Date |
13.03.2018 |
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 28.05.2018
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 BY
|
Name : |
Mr. Sanjay Bansal |
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Designation : |
Chief Finance Officer |
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Contact No.: |
91-120-4196600 |
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Date : |
25.05.2018 |
MANAGEMENT NON-COOPERATIVE: Tel.
No.:91-120-4196700
LOCATIONS
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Registered Office : |
509, Arunachal Building, Barakhamba Road, Connaught Place, New Delhi – 110001, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
Good Luck House, II F 166-167, Nehru Nagar, Ambedakar Road,
Ghaziabad-201001, Uttar Pradesh, India |
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Tel. No.: |
91-120-4196600 / 4196700 |
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Fax No.: |
91-120-4196666 / 4196777 |
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Email: |
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Factory 1 : |
A-42 and 45,
Industrial Area, Sikandrabad, District Bulandshahr – 203205, Uttar Pradesh,
India |
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Tel. No.: |
91-5735-221969 / 221970 |
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Fax No.: |
91-5735-222863 |
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Factory 2 : |
A-51, Industrial Area, Sikandrabad, District
Bulandhahar-203205, Uttar Pradesh, India |
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Tel. No.: |
91-5735-221017 |
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Factory 3 : |
Khasra No. 2839, Dhoom Manik Pur, G.T. Road, Gautam Budh
Nagar, Dadri, Uttar Pradesh, India |
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Tel. No.: |
91-120-2666896 |
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Factory 4: |
A-59, Industrial Area, Sikandrabad, District –Bulandshahar, Uttar Pradesh, India |
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Factory 5: |
D-2, 3 & 4 UPSIDC Gopalpur Industrial Area and Khata No. 5/17.73/18 and 75/9, Village Rajarampur, Sikandrabad, Uttar Pradesh, India |
DIRECTORS
As on 2018
|
Name : |
Mr. Mahesh Chandra Garg |
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Designation : |
Whole-time Director |
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Address : |
R-4/52, Raj Nagar, Ghaziabad - 201001, Uttar Pradesh, India |
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Date of Birth/Age : |
28.06.1946 |
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Date of Appointment : |
06.11.1986 |
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DIN No.: |
00292437 |
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Name : |
Mr. Nitin Garg |
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Designation : |
Whole-time Director |
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Address : |
KF-7, Kavi Nagar, Ghaziabad - 201001, Uttar Pradesh,
India |
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Date of Birth/Age : |
31.05.1980 |
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Qualification : |
Mechanical Engineerfrom HBIT, Kanpur and an M.B.A. from Narsee Monjee Institute of Management. |
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Experience: |
36 Years |
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Date of Appointment : |
21.09.2012 |
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DIN No.: |
02693146 |
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Name : |
Mr. Ramesh Chandra Garg |
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Designation : |
Director |
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Address : |
10/159, Raj Nagar, Sector - 10, Ghaziabad, 201001, Uttar Pradesh,
India |
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Date of Birth/Age : |
15.07.1946 |
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Experience: |
45 years |
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Date of Appointment : |
01.05.2009 |
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DIN No.: |
00298129 |
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Name : |
Mr. Vijender Kumar Tyagi |
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Designation : |
Director |
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Address : |
K 36 Hig, Niti Nagar, Sector -
23, Ghaziabad, Uttar Pradesh, India |
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Date of Birth/Age : |
05.10.1957 |
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Date of Appointment : |
19.12.2006 |
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DIN No.: |
01584278 |
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Name : |
Mr. Rahul Goel |
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Designation : |
Director |
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Address : |
Ke 93, Kavi Nagar, Ghaziabad, Uttar Pradesh, India |
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Date of Birth/Age : |
14.09.1972 |
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Date of Appointment : |
19.12.2006 |
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DIN No.: |
02067212 |
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Name : |
Mr. Kiran Garg |
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Designation : |
Director |
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Address : |
R-9/182, Raj Nagar, Ghaziabad-201010, Uttar Pradesh, India |
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Date of Appointment : |
30.09.2015 |
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DIN No.: |
01931107 |
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Name : |
Mr. Iswar Chandra Agasti |
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Designation : |
Director |
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Address : |
1103, Raheja Apartment, Manmala Tank Road, Matunga (West), Mumbai-
400016, Maharashtra, India |
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Date of Appointment : |
30.09.2014 |
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DIN No.: |
01483515 |
KEY EXECUTIVES
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Name : |
Mr. Abhishek Agrawal |
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Designation : |
Company Secretary |
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Address : |
66B, Dayanand Block, Shakarpur, Delhi-110092, India |
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Date of Appointment : |
01.09.2008 |
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PAN No.: |
AIQPA6773J |
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Name : |
Mr. Sanjay Bansal |
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Designation : |
Chief Finance Officer |
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Address : |
12, Vidyut Nikunj Apartment 112 , I.P. Extension, Delhi-110092, India |
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Date of Appointment : |
01.04.2014 |
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PAN No.: |
ACGPB8456M |
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Name : |
Mahesh Chandra Garg |
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Designation : |
Chairman |
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Experience: |
50 Years |
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Name : |
Mr. Ram Agarwal |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on March 2018
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
(A) Promoter & Promoter Group |
14305108 |
62.18 |
|
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(B) Public |
8701142 |
37.82 |
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Grand
Total |
23006250 |
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 |
|
|
A1) Indian |
0.00 |
|
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|
Individuals/Hindu
undivided Family |
14305108 |
62.18 |
|
|
MANISH GARG AND SONS HUF . |
127708 |
0.56 |
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|
M C GARG AND SONS HUF . |
172500 |
0.75 |
|
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ANIL KUMAR & SONS HUF |
39000 |
0.17 |
|
|
ASHISH KUMAR GARG & SONS HUF |
78938 |
0.34 |
|
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MUNNILAL & SONS HUF |
234092 |
1.02 |
|
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R C GARG & SONS HUF |
642167 |
2.79 |
|
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SUSHIL KUMAR GARG & SONS HUF |
81415 |
0.35 |
|
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RAM AGARWAL & SONS |
50 |
0.00 |
|
|
SUNIL KUMAR & SONS HUF |
131750 |
0.57 |
|
|
KANAK LATA |
286375 |
1.24 |
|
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NEETA GARG |
615770 |
2.68 |
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SHIKHA GARG |
379250 |
1.65 |
|
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RAM AGARWAL |
728956 |
3.17 |
|
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ARCHANA AGARWAL |
538365 |
2.34 |
|
|
REKHA RANI |
511750 |
2.22 |
|
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SAVITRI DEVI |
312875 |
1.36 |
|
|
RAMESH CHANDRA GARG |
570250 |
2.48 |
|
|
ANJU GARG |
393936 |
1.71 |
|
|
SUDHA GARG |
350000 |
1.52 |
|
|
SUNIL KUMAR GARG |
232977 |
1.01 |
|
|
SUSHIL KUMAR GARG |
214870 |
0.93 |
|
|
SAPNA GARG |
334247 |
1.45 |
|
|
ASHISH GARG |
124000 |
0.54 |
|
|
RAJIV GARG |
637750 |
2.77 |
|
|
REENA GARG |
186294 |
0.81 |
|
|
SHYAM AGARWAL |
143706 |
0.62 |
|
|
ANKITA AGARWAL |
373314 |
1.62 |
|
|
MAHESH CHANDRA GARG |
377250 |
1.64 |
|
|
MANISH GARG |
711707 |
3.09 |
|
|
NITIN GARG |
1486750 |
6.46 |
|
|
MITHLESH GARG |
690000 |
3.00 |
|
|
UMESH GARG |
481768 |
2.09 |
|
|
PUSHPA GARG |
784537 |
3.41 |
|
|
SARAS GARG |
314500 |
1.37 |
|
|
RAJAT GARG |
291920 |
1.27 |
|
|
TUSHAR GARG |
288000 |
1.25 |
|
|
DHRUV AGGARWAL |
75000 |
0.33 |
|
|
PARUL GARG |
120000 |
0.52 |
|
|
RADHIKA GARG |
120000 |
0.52 |
|
|
RITU GARG |
121371 |
0.53 |
|
|
Sub Total A1 |
14305108 |
62.18 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
14305108 |
62.18 |
|
Statement showing shareholding pattern of the Public shareholder
|
Category &
Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
370000 |
1.61 |
|
|
UNION SMALL CAP FUND |
370000 |
1.61 |
|
|
Foreign Portfolio
Investors |
69463 |
0.30 |
|
|
Financial
Institutions/ Banks |
70152 |
0.30 |
|
|
Sub Total B1 |
509615 |
2.22 |
|
|
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 |
6314109 |
27.45 |
|
|
Individual share
capital in excess of INR 0.200 Million |
225000 |
0.98 |
|
|
NBFCs registered
with RBI |
200 |
0.00 |
|
|
Any Other
(specify) |
1652218 |
7.18 |
|
|
Bodies Corporate |
1070543 |
4.65 |
|
|
Non-Resident Indian (NRI) |
292377 |
1.27 |
|
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Clearing Members |
289062 |
1.26 |
|
|
Trusts |
236 |
0.00 |
|
|
Sub Total B3 |
8191527 |
35.61 |
|
|
B=B1+B2+B3 |
8701142 |
37.82 |
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BUSINESS DETAILS
|
Line of Business : |
Subject is an engineering product manufacturing conglomerate, engaged in manufacturing & also exporting of wide range of heavy engineered structure, transmission and distribution tower, CDW Tubes, Precision Tubes, Pipes, Sheets and forged engineering products. (Registered activity) |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
1584 (Approximately) |
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Bankers : |
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Facilities : |
NOTE: Long-term
Borrowings Term loans, except (a) INR 50.000 Million from Bajaj Finance Limited secured by exclusive charge on specified Machinery and (b) INR 520.000 Million from Axis Bank Limited. Secured by entire fixed assets located at Village Bhachau distt. Kuutch, Gujarat, are secured by way of first charge on fixed assets of the Company located at A-45, A-42, A-51, A-59 & D-4 Industrial Area, Sikandrabad, Distt. Bulandshahr (U.P.) and Plot No. 2839 Dhoom Manikpur, Dadri (U.P.). Term loan are further secured by way of second charge on entire current assets of the Company, both present and future and personal guarantee of the directors of the Company and their relatives. Short-term
borrowings Working capital limits from Banks comprising of Cash credit Limits / Export credit Limits / Bills discounted/ Buyer’s Credit are secured by first charge on entire current assets of the Company including stocks of raw-materials, work-in-progress, stock lying in godown and ports, finished goods and book debts both present and future. Working capital limits from Banks are further secured by way of second charge on entire fixed assets of the Company, equitable mortgage of two immovable properties belonging to the directors of the Company and their relatives, situated at Plot No. II -F - 166 and II - F-167 , Nehru Nagar, Ambedkar Road, Ghaziabad (U.P.) and personal guarantee of the directors of the Company and their relatives. Loan from Others are secured by way of pledge of Key Men Life insurance policies of the company. |
|
Financial Institution : |
SBICAP Trustee Company Limited, 202, Maker Tower
"E",Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India |
|
|
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Auditors : |
|
|
Name : |
Sanjeev Anand and Associates Chartered Accountants |
|
Address : |
77, Navyug Market, |
|
Tel. No.: |
91-120-2793174, 2793174 |
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Mobile No.: |
91-9971343337 |
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E-Mail : |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary: |
Swachh Industries Limited |
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Fellow Subsidiary: |
Novalty Enterprises Private Limited |
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Others (Enterprises
Over which Key Management Personel are able to exercise significant
influence) |
Excellent Fincap Private Limited |
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63750000 |
Equity Shares |
INR 2/- each |
INR 127.500 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
22006250 |
Equity Shares |
INR 2/- each |
INR 44.013
Million |
|
|
|
|
|
The authorized capital of the Company has increased by INR 27.500 Million on account of merger of M/s Masterji Metalloys Private Limited.
The Company has only one class of shares referred to as equity shares having a par value of INR 2/-. Each holder of equity shares is entitled to one vote per share.
The Company has issued 10,00,000 warrants convertible in equity shares within 18 months at INR 125/- each on 28th December 2016
The details of
shareholders holding more than 5% shares:
|
Name of Shareholder |
As at March 31, 2017 |
|
|
|
Number of Shares |
% held |
|
Reliance Capital Trustee Co.
Limited A/c Reliance Small Cap Fund |
1649640 |
7.50 |
|
Mr. Nitin Garg |
1486750 |
6.76 |
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
44.013 |
44.013 |
44.013 |
|
(b) Reserves & Surplus |
2244.346 |
2058.052 |
1765.781 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
31.250 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2319.609 |
2102.065 |
1809.794 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1175.539 |
991.792 |
792.474 |
|
(b) Deferred tax liabilities
(Net) |
256.523 |
223.951 |
170.457 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
24.594 |
19.109 |
14.071 |
|
Total
Non-current Liabilities (3) |
1456.656 |
1234.852 |
977.002 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2740.435 |
2386.351 |
2126.706 |
|
(b) Trade payables |
914.104 |
578.423 |
410.389 |
|
(c) Other current liabilities |
359.035 |
286.599 |
282.903 |
|
(d) Short-term provisions |
79.478 |
122.120 |
96.370 |
|
Total
Current Liabilities (4) |
4093.052 |
3373.493 |
2916.368 |
|
|
|
|
|
|
TOTAL |
7869.317 |
6710.410 |
5703.164 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2571.798 |
2266.613 |
1928.722 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
62.177 |
75.578 |
36.495 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
10.000 |
54.247 |
54.247 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
30.381 |
24.587 |
65.497 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
2674.356 |
2421.025 |
2084.961 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2337.170 |
1837.831 |
1506.060 |
|
(c) Trade receivables |
1938.092 |
1721.823 |
1498.502 |
|
(d) Cash and cash equivalents |
123.882 |
114.805 |
122.635 |
|
(e) Short-term loans and
advances |
795.817 |
614.926 |
491.006 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
5194.961 |
4289.385 |
3618.203 |
|
|
|
|
|
|
TOTAL |
7869.317 |
6710.410 |
5703.164 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
10738.102 |
9832.244 |
10611.418 |
|
|
Other Income |
251.322 |
114.873 |
271.056 |
|
|
TOTAL
|
10989.424 |
9947.117 |
10882.474 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
8185.852 |
7053.754 |
8275.131 |
|
|
Purchases of Stock-in-Trade |
1.555 |
1.273 |
6.014 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(402.165) |
(227.065) |
(85.046) |
|
|
Employees benefits expense |
572.836 |
456.603 |
381.865 |
|
|
Other expenses |
1698.533 |
1642.029 |
1454.606 |
|
|
TOTAL |
10056.611 |
8926.594 |
10032.570 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
932.813 |
1020.523 |
849.904 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
477.120 |
393.456 |
373.070 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
455.693 |
627.067 |
476.834 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
176.366 |
148.918 |
113.077 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
279.327 |
478.149 |
363.757 |
|
|
|
|
|
|
|
Less |
TAX |
59.717 |
146.088 |
88.029 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
219.610 |
332.061 |
275.728 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1462.915 |
1230.644 |
1044.907 |
|
|
|
|
|
|
|
Less |
Adjustment on account of Merger |
19.701 |
0.000 |
0.000 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Amount transferred to General
Reserve |
40.000 |
60.000 |
50.000 |
|
|
Interim dividend |
0.000 |
16.505 |
16.505 |
|
|
Proposed final dividend |
16.505 |
16.505 |
16.505 |
|
|
Dividend per share INR 0.75
(previous Year INR 0.75) Corporate dividend tax |
3.360 |
6.780 |
6.655 |
|
|
Corporate dividend tax |
0.000 |
0.000 |
0.326 |
|
|
Total
|
59.865 |
99.790 |
89.991 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
1602.959 |
1462.915 |
1230.644 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
2729.567 |
2588.361 |
3216.642 |
|
|
TOTAL
EARNINGS |
2729.567 |
2588.361 |
3216.642 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
339.232 |
482.609 |
0.000 |
|
|
Components and Stores parts |
10.335 |
8.174 |
2.027 |
|
|
Capital Goods |
41.351 |
61.152 |
1.759 |
|
|
TOTAL
IMPORTS |
390.918 |
551.935 |
3.786 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
9.98 |
15.09 |
13.16 |
QUARTERLY RESULTS
|
Particulars |
30.06.2017 |
30.09.2017 |
31.12.2017 |
|
Audited / Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
|
1ST Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
3646.260 |
3125.080 |
3221.070 |
|
Total Expenditure |
3383.740 |
2865.540 |
2973.570 |
|
PBIDT (Excl OI) |
262.520 |
259.540 |
247.500 |
|
Other Income |
2.550 |
1.960 |
1.850 |
|
Operating Profit |
265.070 |
261.510 |
249.350 |
|
Interest |
143.710 |
141.310 |
145.030 |
|
Exceptional Items |
NA |
NA |
NA |
|
PBDT |
121.360 |
120.200 |
104.320 |
|
Depreciation |
45.510 |
47.990 |
48.860 |
|
Profit Before Tax |
75.850 |
72.210 |
55.460 |
|
Tax |
39.600 |
22.240 |
20.520 |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
36.240 |
49.960 |
34.940 |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
36.240 |
49.960 |
34.940 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
216.227 |
145.902 |
180.538 |
|
Cash Generated from Operating Activities |
321.613 |
630.433 |
896.627 |
|
Net Cash Flow From Operating Activities |
260.980 |
526.957 |
823.361 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
65.88 |
63.92 |
51.54 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
5.54 |
5.71 |
7.08 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
40.75 |
29.93 |
18.09 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.40 |
0.56 |
0.56 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.35 |
0.44 |
0.43 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.70 |
0.67 |
0.68 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
1.78 |
1.68 |
1.71 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
1.76 |
1.60 |
1.61 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
1.14 |
1.11 |
1.09 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
1.96 |
2.59 |
2.28 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
2.05 |
3.38 |
2.60 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
2.79 |
4.95 |
4.83 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
9.47 |
15.80 |
15.24 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.27 |
1.27 |
1.24 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.70 |
0.73 |
0.72 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.29 |
0.31 |
0.32 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
93.89 |
80.07 |
70.43 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
1.27 |
1.27 |
1.24 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 2.00/- |
|
Market Value |
INR 77.35/- |
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 |
44.013 |
44.013 |
44.013 |
|
Reserves & Surplus |
1765.781 |
2058.052 |
2244.346 |
|
Money received against share warrants |
0.000 |
0.000 |
31.250 |
|
Net
worth |
1809.794 |
2102.065 |
2319.609 |
|
|
|
|
|
|
Long Term borrowings |
792.474 |
991.792 |
1175.539 |
|
Short Term borrowings |
2126.706 |
2386.351 |
2740.435 |
|
Current Maturities of Long term debt |
180.538 |
145.902 |
216.227 |
|
Total
borrowings |
3099.718 |
3524.045 |
4132.201 |
|
Debt/Equity
ratio |
1.713 |
1.676 |
1.781 |
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
|
10611.418 |
9832.244 |
10738.102 |
|
|
|
(7.343) |
9.213 |
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
|
10611.418 |
9832.244 |
10738.102 |
|
Profit |
275.728 |
332.061 |
219.610 |
|
|
2.60% |
3.38% |
2.05% |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
44.013 |
44.013 |
|
(b) Reserves & Surplus |
|
2476.872 |
2057.743 |
|
(c) Money received against
share warrants |
|
31.250 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
2552.135 |
2101.756 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
1175.539 |
993.791 |
|
(b) Deferred tax liabilities
(Net) |
|
256.523 |
226.212 |
|
(c) Other long term
liabilities |
|
0.000 |
0.000 |
|
(d) long-term provisions |
|
24.594 |
19.109 |
|
Total
Non-current Liabilities (3) |
|
1456.656 |
1239.112 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
2740.435 |
2386.351 |
|
(b) Trade payables |
|
914.104 |
580.979 |
|
(c) Other current liabilities |
|
362.731 |
286.599 |
|
(d) Short-term provisions |
|
89.715 |
122.120 |
|
Total
Current Liabilities (4) |
|
4106.985 |
3376.049 |
|
|
|
|
|
|
TOTAL |
|
8115.776 |
6716.917 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
2571.798 |
2340.380 |
|
(ii) Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
|
62.177 |
79.578 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
30.604 |
27.752 |
|
(e) Other Non-current assets |
|
0.000 |
13.141 |
|
Total
Non-Current Assets |
|
2664.579 |
2460.851 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
2340.802 |
1837.831 |
|
(c) Trade receivables |
|
1938.092 |
1675.131 |
|
(d) Cash and cash equivalents |
|
124.084 |
115.181 |
|
(e) Short-term loans and
advances |
|
1048.219 |
627.923 |
|
(f) Other current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
5451.197 |
4256.066 |
|
|
|
|
|
|
TOTAL |
|
8115.776 |
6716.917 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
10738.102 |
9869.741 |
|
|
Other Income |
|
251.322 |
115.519 |
|
|
TOTAL
|
|
10989.424 |
9985.260 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
8185.852 |
7078.131 |
|
|
Purchases of Stock-in-Trade |
|
1.555 |
1.273 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
(402.165) |
(224.602) |
|
|
Employees benefits expense |
|
572.836 |
462.754 |
|
|
Other expenses |
|
1698.539 |
1648.881 |
|
|
TOTAL |
|
10056.617 |
8966.437 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
932.807 |
1018.823 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
477.120 |
396.954 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
455.687 |
621.869 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
176.366 |
150.957 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
279.321 |
470.912 |
|
|
|
|
|
|
|
Less |
TAX |
|
59.717 |
142.795 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
219.604 |
328.117 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
9.98 |
14.91 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
COMPANY OVERVIEW
Subject (‘The Company’) is an engineering product manufacturing conglomerate, engaged in manufacturing and also exporting of wide range of heavy engineered structure, transmission and distribution tower, CDW Tubes, Precision Tubes, Pipes, Sheets and forged engineering products. The Company is listed on BSE Limited and National Stock Exchange Limited.
RESULTS OF OPERATIONS
AND THE STATE OF COMPANY’S AFFAIRS
During the financial year 2016-17, the Gross Revenues from Operations increased to INR 11850.000 Million as against INR 10840.000 Million in the previous year thereby registering growth of 9% over the previous year. Our EBITDA has gone down by INR 87.800 Million to INR 93.27 Million versus 102.05 crores in previous year. Profit after tax stood at 219.600 Million versus INR 332.000 Million in previous year. Main reason for lower profitability during second-half of the current financial year was due to sharp increase in raw material prices more than 45%. Moreover, demonetization of currency notes has adversely affected the demand of finished goods, resulting more pressure on finished goods prices and lower profitability.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMY OVERVIEW AND OUTLOOK
World Economy
2016-17 was a year when the global economy continued to grow at a disappointing pace, with growth held back by an anemic performance in advanced economies. The year has been defined by political shocks in advanced economies – firstly, the decision by the UK electorate in June to leave the EU, followed by the election of Donald Trump to the US presidency in November. Both events will continue to have ramifications well beyond their borders in 2017-18 and beyond.
In 2016-17, consumer continued to spend cautiously with expenditure increasing by just 2.4% in real terms over 2015-16 – well below the corresponding increase in disposable income – with consumers in Asia Pacific increasing their spending at the strongest rate. Spending in Latin American actually declined over 2015- 16, dragged down by Brazil’s dismal economic performance and weak commodity prices.
Global growth is predicted to rise modestly from 3% in 2016 to just over 3½ per cent by 2018. The mood in the global economy has brightened during the last quarter of last year, with confidence indicators and industrial production increasing, and investment and trade picking up from low levels. Growth is broad-based, including among major commodity producers.
Global GDP growth is projected to rise to a little over 3½ per cent by 2018, helped by improving policy-supported outcomes in some emerging market economies, particularly in Asia, and the assumption of a moderately-supportive fiscal stance in a number of advanced economies, especially the United States in 2018. GDP growth in Japan is set to strengthen to 1.4% this year, supported by stronger export growth, especially in Asian markets, and a modest fiscal easing. In China, near-term demand is being supported by strong infrastructure and housing investment driven by expansionary fiscal policy, including via support for public investment from policy banks, and buoyant credit growth. As efforts intensify to manage financial risks and encourage the necessary transition towards consumption and service sectors, GDP growth is projected to ease gradually to between 6¼-6½ per cent in 2018
Indian Economy
India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). The Government of India has forecasted that the Indian economy will grow between 6.75 and 7.5 per cent in FY 2017-18. According to IMF, Indian economy is expected to grow at 7.7 per cent during FY 2017-18.
In the Union Budget 2017-18, the Finance Minister, verified that the major push of the budget proposals is on growth stimulation, providing relief to the middle class, providing affordable housing, curbing black money, digitalisation of the economy, enhancing transparency in political funding and simplifying the tax administration in the country.
India’s unemployment rate has declined to 4.8 per cent in February 2017 compared to 9.5 per cent in August 2016, as a result of the Government’s increased focus towards rural jobs and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.
Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. Mr. Narendra Modi, Prime Minister of India, has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy, to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 per cent.
The acceleration of structural reforms is bringing a new growth impetus. The Goods and Services Tax (GST), to be implemented from July 2017, should help make India more of a single market and thus spur productivity, investment, competitiveness, job creation and incomes. The abolition of the Foreign Investment Promotion Board, which reviewed foreign investment programmes, should promote FDI inflows. The central government’s initiative to rank individual states on the ease of doing business is opening a new era of structural reforms. Many states have already modernised regulations and administrative procedures and some are experimenting with reforms of land acquisition and labour regulations.
INDUSTRY OUTLOOK
Global steel processing is generally classified into two types that is primary and secondary steel making. Primary steel processing converts liquid iron from a blast furnace or steel scrap into steel. This can be done using melting the scrap steel in electric arc furnace. Secondary steel processing includes the refining of crude steel and different operation. Steel can be processed using the combination of iron, alloy and carbon melting together in proportionate basis. Steel can also be processed through hot rolled and cold rolled method. The steel processing market is expected to reach USD 600 Billion by 2022. Asia-Pacific region is expected to dominate the steel processing market during 2016-2022. This is because the leading steel processing providers are mainly focusing on emerging countries due to their potential in industrial development in future. The demand for steel is growing in the North America region. Due to low production cost and cheap labor, European countries have set up their plants in Asia-Pacific region.
Steel is one of the most important products in the modern world and forms the backbone to any industrial economy. India being one of the fastest growing economies in the world, and steel finding its extensive application right from construction, infrastructure, power, aerospace and industrial machinery to consumer products, the sector is of strategic importance to the country. The Indian steel sector has grown exponentially over the past few years to be the third largest producer of steel globally, contributing to about 2% of the country’s GDP and employing about 5 lakh people directly and about 20 lakh people indirectly.
India was the world’s third-largest steel producer in 2016. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output. The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous modernisation and up-gradation of older plants and higher energy efficiency levels.
India’s crude steel production grew by 7.4 per cent year-on-year to 95.6 Million Tonnes (MT) in 2016. Total production of crude steel during February 2017 grew by 8.5 per cent year-on-year to 8.08 MT. India’s steel exports grew 150.0 per cent year-on-year to 0.75 MT in February 2017, while steel imports declined 46 per cent year-on-year to 0.49 MT. Total consumption of finished steel grew by 3.4 per cent year-on-year to 76.22 MT during April 2016-February 2017.
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.
India is being seen as a bright spot for the growth in global steel production, supported by government’s push to augment capacity and demand from the construction, automotive and infrastructure sectors. India’s steel output grew by 7.4 per cent year-on-year in 2016, and is expected to reach an average annual growth of 8.9 per cent between 2017-2021. The steel output has been estimated to grow to 128.6 million tonnes (MT) in 2021 from 88.4 MTs in 2017 and the share in global output would rise to 7.7 per cent by 2021 from 5.4 per cent in 2017
There exist many factors which carry the potential of raising the per capita steel consumption in the country. These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 11 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Awaas Yojana among others.
FINANCIAL AND
OPERATIONAL PERFORMANCE
The demand pull which was already slacking for last several months has further slackened from third quarter FY17 onwards. However, the Budget presented by our Government and emphasis on infrastructure and agriculture will definitely mitigate to certain extent the demand problem. Government has released some funds for solar development which will further promote the demand. The biggest benefit to steel sector demand will come from realty sector and affordable housing sector. However, the GST which is coming, and if it is implemented from 1st of July should give a good boost to steel industry in the sense that raw material purchase cost will come down and overall cost implication to the manufacturing sector will come down which will boost demand. The Company’s performance has not been as expected because of unprecedented and very rapid and fast increase in raw material prices of HR Coil and Zinc. The Company had a very healthy order book size and it was not possible to pass on the cost immediately. The Company is one of the largest manufacturers of solar support structures where the order size was of almost five months, and this has resulted in a poor performance. Once the price will stabilize or start reducing the company will be perfectly alright and in-line, the Company’s business model remains intact.
Goodluck has reported a muted performance in FY17. Led by steep rise in key input prices i.e. steel and zinc, its EBITDA declined by 18.3% YoY. The Company was unable to pass on the entire rise in key input prices during the quarter, as some contracts were short term in nature. Interest and depreciation cost grew by 14.7% YoY and 24.9% YoY respectively. However, higher other income and a tax writeback led to rise in reported PAT despite weak operational performance. Revenue from Pipe/ Steel/Structures segment grew by 17.9% YoY. Notwithstanding the previous year performance, The Company continues to believe that we are well-poised to cash in imminent opportunities in key areas like infrastructure, railways and solar power sectors. We believe that shifting of focus to value-added products would improve profitability, while improved utilization would boost revenue and stability in the prices of key inputs would aid margin growth, going forward
Further, as steel prices have started to taper down, we expect our margins could normalise, going forward.
Solar power business is improving nowadays because India is still at 12 GW and government is already planning for 10 GW this year. But GST may give some trouble for one or two months but otherwise solar is going on steadily. Oil and gas was in downward trend for last 2.5 years because oil is going down all the expansions are on hold. So that is why the engineering goods is going down, however, the turnover of Engineering goods has gone down by a very little from INR 1510.000 Million to INR. 1430.000 Million in the year 2017. But this year the company expects better as government is doing many expansions and worldwide also the expansions are likely to be there.
This year the company hope the improvement should be there in forging products.
The auto industry had been largely volatile in FY 2017. While demand remained robust initially, it tapered off later on account of deferment of purchase on uncertainty related to the impact of GST on vehicle prices and demonetization, but picked up again towards the end of the year. In totality, the volumes for FY 2017 remained flat as compared to FY 2016. Looking ahead into FY18, we expect an increasing thrust towards infrastructure projects, improving macro-economic scenario and favorable regulatory developments such as emission and fuel efficiency norms and vehicle modernization programs could be the growth drivers.
Under the structure division, fabrication of railway bridges and girders is getting momentum. Future growth is visible in this sector and if we talk of the solar, Indian solar industry is maturing year by year, and coming periods are promising. The Company has raised the production capacity by 24,000 ton per annum to 48,000 tons. So, the coming years our focus will be on the structure division and we will be adding some more sectors in the structure. At present the company is dealing with railways, solar, electrical lines, now we will go for the boiler support structures in a big way for the next year. So this is the line we are looking for next two years, and another line we are looking for is the auto sector, because the government is mulling a policy of scrapping the old vehicles, commercial as well as personal
SCHEME OF
AMALGAMATION
A Scheme of amalgamation (The “Scheme”) for the merger of wholly owned subsidiary company, Masterji Metalloys Private Limited (The “Transferor company”) with effect from 01.04.2015 (the appointed date) was sanctioned by Hon’ble High Court of Delhi on 29.08.2016 and filed with the registrar of Companies on 09.11.2016, Accordingly the scheme has been given effect in the accounts for the year and the entire undertaking of the such subsidiary stands transferred to and vested in the company as a going concern and the subsidiary stands dissolved without winding up. The subsidiary was engaged in the business of manufacturing of iron and steel ingots. As per the scheme, “pooling of interest” method in accordance of AS 14 was adopted and accordingly all the assets and liabilities including reserves and surplus recorded in the books of transferor company has been transferred to and vested in the transferee company at the respective book values as reflected in the books of the transferor company.
The difference between the investment made by the transferee company in the shares of transferor company and the book value of the net assets of the transferor company taken over, amounting to INR 19.701 Million has been debited to the surplus in the statement of Profit and Loss account.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
From Related Parties |
256.957 |
166.863 |
|
|
|
|
|
Total |
256.957 |
166.863 |
INDEX OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G84280742 |
100170151 |
SBICAP TRUSTEE COMPANY LIMITED |
26/03/2018 |
- |
- |
520000000.0 |
202, Maker Tower "E",Cuffe Parade, ColabaMumbaiMH400005IN |
|
2 |
G76718592 |
100154077 |
RBL BANK LIMITED |
02/02/2018 |
- |
- |
240000000.0 |
SHAHUPURI,KOLHAPUR,KOLHAPURMa416001IN |
|
3 |
G61792164 |
100133419 |
HDFC BANK LIMITED |
15/09/2017 |
- |
- |
675000000.0 |
HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
|
4 |
G43908169 |
100097619 |
HDFC BANK LIMITED |
28/03/2017 |
- |
- |
150000000.0 |
HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
|
5 |
G42176602 |
100093089 |
AXIS BANK LTD. |
28/03/2017 |
- |
- |
520000000.0 |
2ND FLOOR, RED FORT CAPITAL, PARSVNATH TOWERS,GOLE MARKET, BHAI VEER SINGH MARG,NEW DELHIDL110001IN |
|
6 |
G40384877 |
100088564 |
BAJAJ FINANCE LIMITED |
22/03/2017 |
- |
- |
118000000.0 |
AKURDI PUNE-PUNEMa411035IN |
|
7 |
G37593845 |
100081311 |
State Bank of India |
15/12/2016 |
- |
- |
1275000000.0 |
COMMERCIAL BRANCHMAIN BRANCH BUILDING, 11 PARLIAMENT STREETDELHIDL110001IN |
|
8 |
G78107349 |
100052023 |
IDFC BANK LIMITED |
29/09/2016 |
08/02/2018 |
- |
543900000.0 |
KRM Tower, 7th Floor, No. 1,Harrington Road, Chetpet,ChennaiTa600031IN |
|
9 |
G87487096 |
100040206 |
SBICAP TRUSTEE COMPANY LIMITED |
08/06/2016 |
20/03/2018 |
- |
1283000000.0 |
202, Maker Tower "E",Cuffe Parade, ColabaMumbaiUP203207IN |
|
10 |
G84785500 |
100019404 |
SBICAP TRUSTEE COMPANY LIMITED |
22/03/2016 |
26/03/2018 |
- |
4271100000.0 |
202, Maker Tower "E",Cuffe Parade, ColabaMumbaiMH400005IN |
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 31ST
DECEMBER 2017
|
|
|
Particulars |
quarter ended |
quarter ended |
Nine months ended |
|
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
1 |
|
Income from
Operations |
|
|
|
|
|
|
Sales/Income from Operations (Gross) |
3173.417 |
3073.576 |
9867.827 |
|
|
|
b) Other Operating Income |
47.649 |
50.075 |
124.581 |
|
|
|
Total Income from
Operations (Net |
3221.066 |
3079.472 |
9992.408 |
|
|
|
Other Income |
1.853 |
1.574 |
6.362 |
|
|
|
Total income |
3222.919 |
3081.046 |
9998.770 |
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials consumed |
2187.207 |
2323.302 |
6830.835 |
|
|
b) |
Purchase of Stock-in-trade |
1.069 |
0.000 |
2.829 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
204.025 |
(71.689) |
262.266 |
|
|
d) |
Employee benefit expenses |
140.183 |
149.700 |
430.009 |
|
|
e) |
Finance Costs |
145.032 |
141.306 |
430.050 |
|
|
f) |
Depreciation and amortization expense |
48.862 |
47.991 |
142.366 |
|
|
g) |
Excise Duty |
0.000 |
0.000 |
309.492 |
|
|
h) |
Other expenses |
441.085 |
464.228 |
1387.413 |
|
|
Total Expenses |
3167.463 |
3054.838 |
9795.260 |
|
|
|
|
|
|
|
|
|
7 |
Profit /(Loss) from
before exceptional items and tax |
55.456 |
72.208 |
203.510 |
|
|
8 |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
55.456 |
72.208 |
203.510 |
|
|
10 |
Tax Expense |
20.521 |
22.244 |
82.370 |
|
|
11 |
Net Profit /(Loss) for
the period |
34.935 |
49.964 |
121.140 |
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
Income: |
|
|
|
|
|
|
A. Items that will not be reclassified to profit or loss |
-- |
-- |
-- |
|
|
|
Income tax relating to items that will be reclassified to profit or loss |
-- |
-- |
-- |
|
|
|
B. Items that will be reclassified to profit or loss |
(3.921) |
0.655 |
3.939 |
|
|
|
Income tax relating to items that will be reclassified to profit or loss |
1.357 |
0.350 |
(1.363) |
|
|
|
Other Comprehensive Income for the year, net of taxes |
(2.564) |
0.429 |
2.576 |
|
|
|
Total Other
Comprehensive Income for the period |
32.371 |
50.393 |
123.716 |
|
|
|
|
|
|
|
|
|
12 |
Paid up equity share capital (Eq. shares of INR 10/- each) |
440.13 |
440.13 |
440.13 |
|
|
13 |
Reserve excluding revaluation reserves |
|
|
|
|
|
14 |
|
Earnings per share (before/after extraordinary items) of INR 10/- each |
|
|
|
|
|
|
Basic & Diluted |
1.58 |
2.27 |
5.50 |
Note:
1. The above Financial Results have been reviewed by Audit Committee and approved by the Board of Directors in their meeting held on 14.02.2018.
2. The Scheme of Amalgamation of Masterji Metalloys Private Limited with
GoodLuck India Limited (Formerly-Good Luck Steel Tubes Limited) was approved by
the Hon’ble High Court of Delhi vide its order dated 29.08.2016, having
appointed date 01.04.2016. Order of the Hon’ble High Court has been filed with
the Registrar of Companies and accordingly, the Scheme has become effective on
09.11.2016. Since the Scheme of Amalgamation has been given effect, the figures
of the current financial results are not comparable with the figures of
previous periods.
3. The Company has adopted Indian Accounting Standard (Ind-AS) from the current
accounting year with 01st April, 2016 as the transition date. Standalone and
Consolidated financial results for the quarter/ nine months ended 31st
December, 2017 are in compliance with the Ind-AS prescribed under Section 133
of the Companies Act, 2013 read together with the Companies (Indian Accounting
Standards) Rules, 2016. Accordingly, the impact on transition has been recorded
in opening reserves and results ended 31st December, 2016 have been restated to
make results comparable. The format for unaudited quarterly results as
prescribed in SEBI's Circular CIR/CFD/CMD/15/2016 dated 13-Nov-2015 has been
modified to comply with requirements of SEBI's circular dated 5th July 2016,
Ind-AS and Schedule III to the Companies Act, 2013 applicable to companies that
are required to comply with Ind-AS.
4. With effect from July1, 2017, the Goods and Service Tax (GST) has replaced
Excise Duty, cess etc. Accordingly, post applicability of GST, revenue from
operation is disclosed net of GST. Hence, the revenue from operations and
expenses for the quarter and nine months ended on Dec. 31, 2017 are not
comparable with the previous periods to the extent.
5. Reconciliation of net profit after tax for the corresponding quarter/nine
months ended on December 31, 2016 between erstwhile Indian Generally Accepted
Accounting Principles (GAAP) and Ind-AS are as under:
6. The Ind AS compliant financial results, pertaining to period ended December 31, 2016 have not been subject to limited review or audit. However, the management has exercised necessary due diligence to ensure that such financial results provide a true and fair view of its affairs.
7. The Statement does not include Ind-AS Complaint Unaudited Consolidated and
Standalone results for the previous year ended 31st March, 2017 as the same are
not mandatory as per SEBI's circular CIR/CFD/FAC/62/2016 dated July 05, 2016.
8. Tax Expenses are net of Current Tax, Deferred Tax and MAT Credit
Entitlements.
9. Previous period figures have been regrouped/reclassified wherever necessary.
10. The results of the company may be downloaded from stock exchange's website
or the Company's website, i.e., www.goodluckindia.com.
11. Goodluck India Limited has incorporated a wholly owned subsidiary M/s
Swachh Industries Limited on 10th March 2017, therefore the previous period
figures have not been reported in consolidated financial results.
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Outstanding bank guarantees issued by the banks Counter guaranteed by the Company |
182.312 |
91.717 |
|
Bills discounted with Banks |
185.719 |
165.822 |
|
Disputed demand under Central Excise and Commercial Tax U.P. |
2.119 |
43.607 |
FIXED ASSETS
- Land (Leasehold)
- Land (Freehold)
- Factory Building
- Office Building
- Furniture & Fixtures
- Residential Flat
- Plant & Machinery
- Office Equipments
- Vehicles
PRESS RELEASE
GOODLUCK INDIA LIMITED
BOARD APPROVES DEMERGER
Posted On: 2018-03-08 07:02:46
The Board of Directors of Goodluck India Limited at its meeting held on today, March 08, 2018, has considered and approved, in principle, the proposed Corporate Restructuring by way of Demerger of Goodluck India Limited.
The Board of Directors of the Company will further meet to consider and approve
the Draft Scheme of arrangement and other documents in this connection.
Shares of Goodluck India Limited was last trading in BSE at INR 89.05 as
compared to the previous close of INR 92.55. The total number of shares traded
during the day was 11535 in over 106 trades.
The stock hit an intraday high of INR 95.9 and intraday low of 88.2. The net
turnover during the day was INR 1035926.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 68.26 |
|
|
1 |
INR 91.21 |
|
Euro |
1 |
INR 79.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
SWT |
|
|
|
|
Analysis Done by
: |
VRS |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.