Scan Steels Ltd

Scan Steels Ltd

Scan Steels Ltd(formerly Clarus Infrastructure Realties Ltd) was incorporated on 18th January 1994 as a Private Limited Company in the name of Mittal Securitiesthen it was converted in the Public Limited Company on 18th October 1994. This Company was formed with an object to engage itself in the business of Finance Investment and Trading in Shares and Securities. In 1994 MSFL came out with an public issue of 750000 Equity Sharess of Rs.10 each for cash at par aggregating to Rs. 75 Lakhs. This issue was to part finance the plan to expand and diversify its business activities.Later the company's name was changed to Clarus Finance and Securities Ltd and then again the name was changed to Clarus Infrastructure Realties Ltd. In 2010the directors have considered the proposition of a scheme of arrangement with M/S Scan Steel Limited . Under this scheme of arrangement Scan Steel Limited a renowned steel company mainly into re-rolling Iron bar and having an integrated Steel Plant located at Rajgangpur Odisha decided to merge with the company. The Networth of the company is more than Rs. 180 Crore. The Board based on the method of Networth valuation decided to amalagmate both the companies in the near future subject to approval and compliance of other statutory permissions. The Hon'ble High Court of Bombay vide its order dated 11 May 2012 has approved the scheme of merger of Scan Steels Ltd with Clarus Infrastructure Realties Ltdhowever High Court of Odisha was pending during the year.The High Court of Odisha vide its order dated 25 February 2014 has approved the same. the scheme of amalgamation became effective upon filing of form INC-28 with Registrar of Companies Maharashtra on 12 August 2014.Pursuant to Scheme of Merger the Name of the Company has been changed to M/s. Scan Steels Limited w.e.f 26 September 2014. The company has its listings on the BSE Limited in India. The company is engaged in the manufacturing of TMT Re-Bars Sponge Iron MS Billets/ Ingots and also generating power for captive consumption. The company has its manufacturing facilities in Odisha and Karnataka.Pursuant to Scheme of Merger for every 10 Equity Shares of Rs10/-(Rupees Ten only) each held by Shareholders in M/s. Scan Steels Limited 8.03 Equity Share of Rs 10/- (Rupees Ten Only) each credited as fully paid-up in the Equity Share Capital of the M/s. Clarus Infrastructure Realties Limited. As per the above ratio the Company has allotted 20000000 equity shares pursuant to the scheme of merger on 18.03.2014 to the shareholders of transferor company(i.e.Scan Steels Ltd).During the FY2016 the company has issued and allotted 8000000 (Eighty Lakhs Only) Warrants Convertible in to Equity Shares of face value of Rs 10 each at a premium of Rs 40 per share. Further the allottees had exercised their right to convert 4453330 warrants into equity shares of Rs 10/-.The aggregate outstanding amount of Warrants of the company as on 31 March 2016 was Rs 44333500/- representing 3546670 warrants convertible into equity shares.During the FY2017the company has allotted 2746665 Equity Shares of Rs10 / - each on Conversion of Warrants in to Equity Shares.The Company produced 62542 tonnes (MT) of TMT Rods in FY 2016-17 increased by 27.58% in compare to the previous year and sold 46611.00 MT decreased by 21.65% in compare to previous year.During the FY2018the company has allotted 800000 Equity Shares of Rs 10 / - each on Conversion of Warrants in to Equity Shares.The Company produced 68957.080 tonnes (MT) of TMT Rods in FY 2017-18 increased by 10.25% in compare to the previous year and sold 69281.020MT increased by 6.72% in compare to previous year.The company is having status of ISO 9001 ISO 14001 and ISO 18001 certification which is internationally recognized for the production quality control and Environmental as well as OHSAS respectively.The Company produced 96506.560 tonnes (MT) of TMT Rods in FY 2018-19 increased by 39.95% in comparison to the previous year.During the year 2018-19 the rating of the company has been upgraded to BB (-) (IVR Double B minus with stable outlook) for Long Term Debt and Fund Based Facilities and IVR A4 (IVR A Four) for Short Term Non-Fund based Facilities from Informerics Valuation and Rating Pvt Ltd.The Company has produced 122355 metric tonnes (MT) of TMT Rods in FY 2019-20 increased by 26.78% in comparison to the previous year.The revenue of the Company has been impacted and the most of the manufacturing facilities of the Company were disrupted during the First half of FY2020-21.