Professional Documents
Culture Documents
31 March,
2006
2612.61
170.77
643.30
1798.54
10.73
1809.27
222.43
95.96
126.47
41.05
85.42
2036.65
165.14
462.91
1759.98
145.39
382.80
1408.60
14.33
1422.93
214.68
76.28
138.40
36.92
101.48
41.40
1231.79
9.48
1241.27
176.84
76.10
100.74
35.77
64.97
40.31
142.88
105.28
100.00
50.00
21.96
20.92
13.88
41.40
(1.34)
137.44
45.38
0.50
1.51
0.38
182.82
100.00
21.96
60.86
(1.08)
84.34
22.53
109.26
50.00
13.88
45.38
Dividend
The Board of Directors recommends a dividend at the rate of 75% per
cent on the equity shares of the Company for the year ended 31st March
2007 amounting to Rs. 21.96 Crs., including dividend tax, surcharge
and cess @ 16.995%. All the existing equity shares, including 58,00,000
shares issued on conversion of warrants in terms of shareholders
approval, will be eligible for such dividend.
Review of Operations
During the year under review, your Company achieved net turnover of Rs.
1,408.60 Crs. as against Rs. 1,231.79 Crs. in the previous year, higher
by 14.4%. The gross sales before adjusting inter divisional sales was
Rs. 2,036.65 Crs., registering a growth of 15.7% over the previous
year.
The Company has achieved profit before tax of Rs. 138.40 Crs. as
against Rs. TOO.74 Crs., higher by 37.4% and net profit of Rs. 101.48
Crs., as against Rs. 64.97 Crs. in the previous year, higher by 56.2%.
The collective turnover of the subsidiaries (without inter
company/division sales) stood at Rs. 92.37 Crs., which is higher by
8.3% over the previous year.
The consolidated net turnover (net of excise duty and inter
company/division sales) increased 9.2% to Rs. 1,964.71 Crs. The
consolidated profit before tax and profit after tax moved up by 43.3%
and 62.5% to Rs. 182.92 Crs. and Rs. 137.78 Crs. respectively.
Speciality Steel Business
Steel business achieved a turnover (net of excise duty) of Rs. 1,010.27
Crs. in the year under review as against Rs. 897.82 Crs. in the
previous year, thus registering a growth of 12.5%.
During the year under revew, the Company increased iron ore mining
after commencement of activities in the previous year. The Company has
also taken over a steel rolling plant in Agra, during the year, with an
annual capacity for manufacturing 72,000 tonnes of construction steel.
This division, named as Construction Steel Division, achieved a
turnover of Rs. 41.08 Crs. since acquisition in December 06.
The Company has taken up an expansion of capacity of speciality steel
to 1 Mn. tonnes over the next 3 years in phases. The capex programme
Ranchi, The Company holds 40% stake in this venture while the balance
is being held by Joh Pengg AG, Austria.
- CCL Usha Martin Stressing Systems Ltd., with CCL group of UK, for
dealing in posttensioning in building and other civil works. The
Company holds 50%4take in this venture.
- Dove Airlines Pvt. L;o., with Emta group of Koikata, to operate non
scheduled air transport (charter) services. Both the parties hold
equal stake in this venture.
The above joint venvures would commence their operations in due course.
The existing joint venture with M/s Gustav Wolf Seil-und Drahtwerke
GmbH & Co, KG of Germany, namely Gustav Wolf Specialty Cords Ltd., in
which the Company holds 49% equity, has maintained a gross income of
Rs. 0.80 Crs. in the year under review.
Capital
Out of 58,00,000 convertible equity warrants issued to promoter group
companies in October 2005 with the approval of shareholders, 36,25,000
such warrants have been converted into equal number of equity shares of
Rs. 5 each against receipt of Rs. 1 37.70 being 90% of issue price of
Rs. 1 53 per warrant, fixed according to relevant SEBI guidelines. In
the similar manner, the balance warrants have also since been converted
in April, 2007. The equity shares thus issued rank pari passu with
existing equity shares including for dividend declared, if any, during
the year under review and onwards.
The funds raised as above, are meant to be and being utilized for
expansion of steel manufacturing capacity, wire ropes and specialty
products business, for mining activities, meet needs or additional
working capital and/or general corporate purposes.
Your Directors have proposed for subdivision of equity shares of the
Company by reducing face value of the shares from Rs. 5/- each to Re
1/- each. Thus, upon receiving all the necessary approvals, one equity
share of Rs. 5/- each will be subdivided into five equity shares of Re
1/-each.
Your Directors place on record their appreciation for confidence
reposed by the investors in the Company.
TPM& Quality
Wire Ropes and Speciality Products, Division at Ranchi was awarded
2005 Award for TPM Excellence - Firsrt Category by Japan Institute of
Plant Maintenance [JIPM], thus the Company becoming the only indicia
Company in wire and wire rope business to have obtained this
prestigious award. Now this division is gearing up for 2nd level
accredition.
Steel Division of the Company, has already received Excellence and
Consistency awards for tolal productivity maintenance from JIPM.
These awards for the ma|or manufacturing facilities of the Company
Directors
During the year, Ms. Neeta Mukherjee was nominated as Director on the
Board of the Company by ICICI Bank Ltd. after withdrawal of its
earlier nominee Mr. M J Subbaiah. Your Directors welcome Ms. Mukherjee
on the Board. The nomination of Mr. J K Ray was withdrawn by IDBI Bank
Ltd., from the Board of the Company. Your Directors place on record
their appreciation for the contribution made by Mr. M J Subbaiah and
Mr. J KRay.
Mr. U V Rao, Mr. N J Jhaveri and Mr. A K Chaudhri are retiring by
rotation and being eligible, offer themselves for re-appointment.
Mr. Suresh Neotia and Mr. Ashok Basu have been appointed as additional
Directors on the Board of the Company with effect from 1 7th May, 2007
and they will hold office up to the date of the ensuing Annual General
Meeting.
Directors Responsibility Statement
Pursuant to the requirement under Section 21 7 (2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed:
(i) That in preparation of the annual accounts for the financial year
ended 31st March, 2007, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
(ii) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under review;
(iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1 956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
(iv) That the Directors have prepared the annual accounts for the
B K Jhawar
Chairman
11-Feb-2008
Business Profile
Usha Martin (USHAMARTIN) is engaged in the manufacture of specialty steel and value-added
steel products. It was established in 1960 as Usha Martin Black and got its current name in
1983.
The company operates through its various divisions. The ISO 9001 certified wire and wire rope
division with its 100,000 MT/annum manufacturing facilities in Ranchi manufactures a range of
steel wire ropes which find application in oil exploration, construction, elevators, cranes,
mining, fishing, load transportation and general engineering sectors. The ISO 9002 certified
steel division in Jamshedpur manufactures steel long products used in industries like
automobile, railways, general engineering, fasteners, defence and power. The Bangalorebased, ISO 9001 machinery division in technical collaboration with Marshall Richards Barcro
(UK), De-Angeli Industries SPA (Italy), Stolberger Maschinenfabrik (Germany), Hi-Draw
Machinery (UK) and Redaelli Techna Meccanica (Italy) manufactures wire drawing and allied
machineries.
The Usha Ismal division with a manufacturing unit in Ranchi offers hydraulic presses and
accessories for manufacturing mechanically spliced wire rope slings, machines for proof load
testing of wire rope slings, and die-less hand operated hydraulic crimping tools. These
products find wide application in steel plants, oil sector, heavy engineering industry, port
trusts, electricity boards, factories, with electrical contractors, and other sectors. It has
planned enrichment and optimization of mineral resources, enhance the capacity of captive
power generation and value added products at a project cost of INR 21 billion.
With an established pan-India marketing network, the company has distribution centers in the
UK, South Africa, Denmark, USA and Singapore among other countries. The registered office is
located at 2A, Shakespeare Sarani, Kolkata-700071.
Financials
Usha Martin registered a 14.22% growth in net profits to Rs 324.50 million for the quarter ended in
December 2007 from a profit of Rs 284.10 million for the quarter ended in December 2006
Net Sales rose 14.59% to Rs 4026.50 million for the quarter ended December 2007 from Rs
3513.90 million for the quarter ended December 2006.
Total income rose 14.66% to Rs 4043 million for the quarter ended December 2007, from Rs 3526.1
million for the quarter ended December 2006.
The earnings per share (EPS) of the company stood at Rs 1.30 in the quarter ended December
2007 .
Recent Developments
08-FEB-08
Usha Martin Group, is now foraying into the realty and infrastructure business. The group has
floated a new company, Usha Breco Realty (P), headquartered at Mumbai for this initiative. Usha
Breco Realty will focus on joint ventures for property development under a profit or revenue
sharing arrangement. Usha Breco Realty is currently implementing projects worth around Rs 2.5
billion.
07-FEB-08
Usha Martin commenced a joint venture for manufacture of oil tempered wires, Pengg Usha Martin
Wires, at its Ranchi plant.
Future Plans
The company is planning to sell special quality wire ropes for elevators, mining and the
construction sector in China. Meanwhile, the company is planning to invest Rs 21 billion to ramp up
its capacity, develop a coal mine, besides setting up a bright bar plant and a power plant. It also
wants to create infrastructure in its captive mines.
The company would increase its speciality steel capacity to one million tons in the next three years.
A plant would be commissioned at Chennai in one-and-a-half year`s time to produce bright bars
required for manufacturing auto components with a capacity of 30,000 tons per annum.
The company in November 2007 decided to sell the entire equity in its subsidiary company UM
Cables to the Manchester-based B3 Cable Solutions. An MOU to this effect is signed, subject to due
diligence and necessary approvals.
In Brief